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2 more plead
guilty in $40 mil
Ponzi scam

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Star-Bulletin staff

Two more men have pleaded guilty to charges they participated in a Ponzi scheme that defrauded investors of more than $40 million.

Also, discussions are ongoing to reach an agreement with another defendant, Assistant U.S. Attorney Larry Butrick confirmed.

So far, three of eight people named in a March indictment and December complaint have pleaded guilty to various charges, including mail and wire fraud, conspiracy and money-laundering charges. Trial is scheduled for the week of March 20.

Yesterday, Stephen Marn, 66, pleaded guilty to conspiracy and engaging in monetary transactions involving deposits derived from unlawful activities.

Rande Scott Worcester, 43, pleaded guilty to conspiracy and wire fraud.

The Cayman Islands Investment scheme allegedly promised investors interest of 8 percent a week for 13 weeks. The money was to be invested in the Cayman Island government and banks. Instead, interest payments paid to investors were taken from money invested by others.

Marn, who said he is an employee of Fidelity Escrow Services, admitted to participating in the conspiracy despite his concern that the monies were derived from illegal activities and knowing the investment program was a scam.

He handled large cash transfers from the mainland to Hawaii, deposited investment payments into escrow accounts he opened for his co-conspirators and prepared cashier's checks.

"I realized what I did was wrong and at the time I knew I was doing wrong," Marn told the court.

Worcester admitted to "aiding and abetting" co-conspirators by setting up accounts at Fidelity Escrow. He said he knew investors' money was supposed to go offshore but wasn't.

"I turned a blind eye to it and I'm guilty of that," he told the court. "I wanted to make money and I'm guilty."

As part of the plea agreements, Marn and Worcester have agreed to testify for the government.