Four Meridian Executives Face Prison Time

Jul 9, 2018

Meridian's Douglas Swenson, Mark Ellison, Jeremy Swenson and David Swenson face years of jail time after being convicted of fraud.
Credit SalFalko / Flickr

On Tuesday, four ex-business executives from Meridian will face a magistrate judge before being sent to prison for numerous counts of fraud. This comes after four years of appeals and legal proceedings.

Douglas Swenson was the president of Diversified Business Services and Investments before the company filed for bankruptcy in 2008. He was found guilty of 34 counts of wire fraud and 44 counts of securities fraud in 2014. Those 44 counts of securities fraud also extended to his two sons and secretaries, Jeremy and David Swenson, along with DBSI attorney Mark Ellison.

DBSI had investors located across the country, and the company evolved into a Ponzi scheme. Money from new investors was being used to pay old investors, making it seem like the company’s assets were creating revenues.

According to the Idaho Statesman, the four men had appealed their case to the 9th U.S. Circuit Court of Appeals, but their criminal convictions were upheld last August. They also attempted to appeal to the U.S. Supreme Court, but they were turned down on June 25.

Douglas Swenson faces 20 years in prison, while his sons face three and Ellison faces five. It’s now up to U.S Magistrate Candy Dale of Boise to decide when they will be incarcerated. Prosecutors want the men to be taken into custody now, while their defense lawyers argue the men should remain free until officials decide to which prison they will be sent.

Follow Blake Simony on Twitter @blakesimony for more news.

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