180:. The FBI arrested Berg in Los Angeles on October 21, 2010, on a criminal complaint charging him with wire fraud, money laundering, and bankruptcy fraud. On December 1, 2010, Berg was labeled as a potential flight risk and was denied bail. MTR Western was sold by a bankruptcy trustee. From the Ponzi scheme, Berg diverted as much as $ 85 million of investor money for his personal use, including $ 45 million channeled into MTR Western.
42:. He sold fraudulent investments through the Meridian Group, a group of investment companies, defrauding nearly 700 investors who lost almost $ 150 million, and he was sentenced to 18 years in prison in 2012. He has been nicknamed "Mini Madoff" for his crimes' similarity to those of
66:, about an hour to the northwest. Darren's sister Wendy described their parents' relationship as abusive. "When he was a tiny boy, and my dad would be beating on my mother, he would crawl under the bed," said Wendy about Darren. Darren's grandfather drove for
128:, and threw lavish holiday parties that one driver described as "legendary". Some of Berg's corporate employees described Berg as being prone to anger, throwing staplers, laptops, or coffee mugs at people who upset him. One employee, who spoke to
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In
December 2017, Berg was discovered missing after having walked away from the minimum security area at USP Atwater. Mark Calvert, who served as the bankruptcy trustee for Berg's Meridian investment groups, likened Berg's escape to the film
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reported that Berg "started swindling investors in 2001" with an investment firm known as
Meridian Group which collapsed into bankruptcy in 2010. The firm perpetrated the largest Ponzi scheme in Washington state history.
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On August 2, 2011, Berg pleaded guilty to one count each of wire fraud, money laundering, and bankruptcy fraud. In
February 2012, Berg was sentenced to 18 years in prison. He was assigned to serve his sentence at the
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in 2011, "Financial scandals have trailed
Frederick Darren Berg across the Northwest for more than 25 years โ each linked to his unusual lifelong fixation on tour buses." Bergโs first fraud conviction was for a
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203:, although without needing to create an escape tunnel. "The only difference is Berg just walked away," said Calvert, who criticized the choice to house Berg in a minimum-security facility.
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Berg told investors in
Meridian Group that he would buy mortgage loans and collect loan payments from borrowers. To deceive his investors, Berg opened dozens of
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499:"Mercer Island Man Arrested for Ponzi Scheme and Bankruptcy Fraud Darren Berg Defrauded Investors and Allegedly Tried to Hide Assets During Bankruptcy"
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as much as $ 21,000 of its funds to fund his charter bus company. Berg denied the allegations, left the fraternity, and dropped out of the university.
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reporter could find no record of Berg having obtained any university degree. Berg has falsely claimed to be a lawyer in other contexts as well.
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Berg was known for being meticulously attentive to details at MTR Western. He interviewed his drivers personally, bought them uniforms from
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H3-45 motorcoaches. In 2006, he announced a campaign to make MTR Western, which at that time had 300 workers and 167 buses in six cities,
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Berg's parents divorced in 1975. After his mother remarried, he changed his last name to match his stepfather's. He enrolled at the
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in early 2018, a few weeks after his escape. Blankenship sent a message to Berg's mother with a note reading, "hello from Rio".
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of MTR Western in a hearing about an infraction for which the company had been cited, despite Berg not being a member of the
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fraternity chapter. Berg later served as president and treasurer of the chapter simultaneously. The chapter accused Berg of
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In 2007, Berg founded GeoGenius, a company based in
Seattle that produced travel-related audio and video content for
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for stealing approximately $ 30,000 and was sentenced to probation. After leaving
Portland for Seattle in 1989, the
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117:. Berg admitted at the hearing that he was not an attorney but insisted that he had graduated from law school. A
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244:"Prison escape of Darren Berg, Washington's 'Mini Madoff,' is like 'Shawshank Redemption,' official says"
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under fake names, wrote fake loan documents, and submitted this misleading information to his auditor,
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on condition of anonymity, said that Berg would never admit wrongdoing after such outbursts.
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in Berg's prison escape case. Blankenship posted photos online, possibly including Berg, in
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283:"Darren Berg on the Run: Inside the Biggest Ponzi Scheme in Washington State History"
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310:"Darren Berg's scramble to keep his empire afloat and investors from closing in"
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592:"Inmate who defrauded investors more than $ 100 million escapes Atwater prison"
474:"After spending spree, a reckoning for man behind state's biggest Ponzi scheme"
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has named Berg's boyfriend, flight attendant
Darrell Ray Blankenship, as a
26:; May 17, 1962) is an American entrepreneur, business executive, convicted
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Berg was born with the name
Frederick Darren Muskopf on May 17, 1962 in
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Where on Earth is Darren Berg? Escaped Ponzi schemer still at large
444:(Press release). MTR Western. September 25, 2007. Archived from
545:"Berg creditors may recoup 15-25 percent, says bankruptcy plan"
344:"Financial empire, luxurious lifestyle were built on a mirage"
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70:, a fact that Berg would frequently tell MTR Western drivers.
618:"APNewsBreak: Escaped Ponzi scammer possibly went to Brazil"
524:"Darren Berg loses attempt to be free while awaiting trial"
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where he joined and was elected treasurer of Oregon's
566:"Darren Berg gets 18-year sentence for Ponzi scheme"
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30:operator, and prison escapee. He is the founder of
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669:American people convicted of mail and wire fraud
439:"MTR Western announces formation of GeoGenius"
616:Balsamo, Michael; Day, Chad (April 4, 2019).
16:American entrepreneur and convicted fraudster
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664:American businesspeople convicted of crimes
414:"Berg often portrayed himself as a lawyer"
109:. In 2007, Berg identified himself as the
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156:scheme in 1987 while he was living in
387:"The greening of a tailpipe industry"
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590:Shanker, Vikaas (December 6, 2017).
472:Pulkkinen, Levi (February 8, 2012).
564:Grunbaum, Rami (February 9, 2012).
412:Grunbaum, Rami (January 15, 2011).
342:Grunbaum, Rami (January 15, 2011).
186:United States Penitentiary, Atwater
281:O'Rourke, Clara (March 19, 2018).
242:Carter, Mike (December 14, 2017).
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679:Criminals from Washington (state)
543:Grunbaum, Rami (March 25, 2011).
393:. American City Business Journals
316:. American City Business Journals
115:Washington State Bar Association
385:Lamm, Greg (November 9, 2008).
308:Lamm, Greg (January 28, 2011).
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188:(USP Atwater) in California.
101:in Seattle in 2003 with four
391:Puget Sound Business Journal
314:Puget Sound Business Journal
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659:Businesspeople from Oregon
166:Seattle Post-Intelligencer
38:operator headquartered in
689:Pyramid and Ponzi schemes
200:The Shawshank Redemption
160:. Berg was convicted of
24:Frederick Darren Muskopf
674:Criminals from Oregon
289:. No. March 2018
212:U.S. Marshals Service
20:Frederick Darren Berg
75:University of Oregon
532:. December 1, 2010.
48:escaped from prison
216:person of interest
210:reported that the
139:-enabled devices.
684:American escapees
570:The Seattle Times
550:The Seattle Times
529:The Seattle Times
418:The Seattle Times
349:The Seattle Times
248:The Seattle Times
174:post office boxes
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28:Ponzi scheme
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654:1962 births
287:Seattle Met
130:Seattle Met
99:MTR Western
64:Grants Pass
32:MTR Western
643:Categories
455:2008-06-18
372:2022-03-18
226:References
178:Moss Adams
162:bank fraud
87:embezzling
54:Early life
36:motorcoach
627:March 13,
601:March 13,
575:March 13,
508:March 13,
483:March 13,
423:March 13,
397:March 13,
320:March 13,
293:March 13,
253:March 13,
126:Nordstrom
50:in 2017.
103:Prevost
46:. Berg
40:Seattle
79:Eugene
22:(born
449:(PDF)
442:(PDF)
629:2022
603:2022
577:2022
510:2022
485:2022
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255:2022
34:, a
503:FBI
137:GPS
77:in
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