Ponzi scheme suspect freed on bond

Associated Press - November 20, 2009 10:24 PM ET

AMITE, La. (AP) - A Louisiana businessman arrested on charges he defrauded at least 200 investors out of more than $11 million in an alleged Ponzi scheme has been released on $150,000 bond.

Sixty-year-old William J. Chaucer Jr., of Ponchatoula, was booked into a Tangipahoa Parish jail following his arrest Thursday. He was freed Friday after posting bond.

State authorities said Chaucer used money invested in his loan companies to pay for more than $400,000 in Mardi Gras expenses, $5,500 worth of cosmetic surgery and thousands more for his wife, Cheryl, to compete in pageants.

Chaucer is the owner of Chaucer Holding Company and several other companies in Hammond, Covington and Ponchatoula. Authorities said none of his investors have been paid since he closed his companies in September.