Frank E. Pate, formerly of Frisco, Texas who describes himself as an “investment counselor” was arrested in Sept 2014 and indicted by the FBI. He appeared before a judge and a trial date took place in late May 2015.
As of 26 May 2015, the jury deliberated about one hour and found Frank guilty of mail and wire fraud.
According to the Dallas Morning News Frank Pate was found guilty on two counts of wire fraud and one count of mail fraud. He faces up to 20 years in prison on each count.
Pate is currently in jail awaiting sentencing.
Frank Pate was “running a Ponzi scheme and scammed a lot of exes and Freezoners and some indies for millions”, said Mike Laws, one of the whistle-blower on the case.
Pate used to attend Rey Robles’ Freezone conventions and was also a “twin” of Dexter Gelfand according to a posting by Gelfand on a Freezone web site.
Mike Laws further reported that “…10-12 victims showed up as witnesses. … Some ten witnesses who had lost nearly a total of 1.8 million dollars testified to all experiencing a similar scenario. Their money was taken by Frank Pate, but there is no documentation of their money going into an account for investment purposes. Instead the FBI showed bank records proving Frank Pate took the money directly from his own account for personal expenses. During trial when asked to show proof or documentation that the invested money went into a legitimate trading or investment account, Mr. Pate was unable to do so.”