A Hixson man has been charged by federal authorities with defrauding investors.
Richard Alan Bazzell was charged with mail fraud.
Authorities said he formed TrailSteaks LLC, a snack food distribution company, as well as Prosperitas Capital, which was to be a parent company of small businesses. TrailSteaks was the only business it produced, it was stated.
Prosecutors said Bazzell in 2010 began seeking investors, promising them guaranteed eight percent rate of return. He inflated the value of Prosperitas Capital, it was stated.
Authorities said Bazzell would routinely make investor payments, but, by the end of 2013, most of his funds had run out.
It was charged that he misrepresented the status of his companies to investors, making "false and fraudulent" claims.
He is represented by attorney Leslie Cory.