Victim in ponzi scheme comes forward

BATTLE CREEK, Mich. (WOOD) - Victims in an alleged Ponzi scheme continue to come forward.

Three men with west Michigan ties are charged with bilking investors out of millions of dollars.

Michael Heshelman, Bryce Sherwood and Dennis Mickelson were indicted back in 2006 but the case is now unsealed.

Chad Worthington says he met one of the money milking suspects at church in Battle Creek. He says he became close friends with Bryce Sherwood and his family - and even spent time with them as their fortune appeared to grow before his vary eyes.

Sherwood's family moving from Battle Creek into this plush pad on Duncan Lake in Caledonia and there were other toys. Sherwood sporting a new Mercedes and had plans to buy a plane.

Worthington was a college student in the late 90's. He says Sherwood approached him about investing in gold. Worthington gave up $1,500. Money he never saw again. And it was Sherwood's ambition for the 'big deal' that never seemed to add up.

"He's talking about moving assets for president Carter," said Chad Worthington. "He's talking about currency exchange, about the world bank in New York and having access to all this gold and it just didn't make sense to me."

Sherwood, along with Michael Heshelman and Dennis Mickelson are all charged in a grand jury indictment with running a fraudulent investment scheme.

Federal authorities say the men cheated investors out $10 to $12 million.

The indictment alleges one or more of the suspects would tell investors they had access to secret investment opportunities not available to the general public. The trio would then use a portion of the money from new investors to pay previous investors saying it was a partial return on their investment.

Authorities say the men kept large sums of the money themselves. Heshelman and Mickelson keeping well over a million dollars each. Sherwood's take around $470 thousand.

"If you could go back over the past 15 years starting in Battle Creek you would I think you guys would find that there are hundreds of people that this man affected not only financially but emotionally as well," said Worthington.

According to the indictment at least five victims gave at least a $1 million a piece.

Heshelman was arrested in Switzerland and arraigned in Grand Rapids late last month.

His detention hearing continues Monday.