Gene A. O'Neal, 36, of Atlanta, made his initial appearance on Thursday before a U.S. magistrate judge on federal charges of mail and wire fraud. O'Neal allegedly ran a scheme that defrauded investors in Pinnacle Development Partners LLC, a purported real estate investment fund based in Atlanta. 

According to the indictment and information presented in court, beginning in July 2005, Pinnacle allegedly began telling investors they could make a 25 percent profit in 45 days, which later became a 25 percent profit in 60 days, upon investment in partnerships Pinnacle formed to acquire real property. Investors were told that Pinnacle was in the business of buying distressed, foreclosed or bank-owned real estate, which Pinnacle intended to "flip" for a profit after making minor repairs and cosmetic improvements.

Pinnacle solicited investment by running more than $2.5 million worth of advertising in national and local media publications. As a result of his aggressive advertising campaign promising 25 percent returns in either 45 or 60 days, O'Neal induced more than 2,000 investors from throughout the United States and some foreign countries to invest more than $69 million in just 15 months. ...