posted October 6, 2008
Former Ooltewah current trader Luis H. Rivas, who authorities say bilked over $31 million from investors, said he is now broke.
In his first court appearance in Chattanooga on Monday afternoon, Rivas was asked by Federal Magistrate Court Judge Bill Carter if he had any money to hire an attorney. Rivas replied, "None whatsoever."
Asked his education status, he told the magistrate judge he has a master's degree in education.
Rivas had $100,000 cash on him when he was arrested in Topeka, Kan., but that was confiscated.
He entered not guilty pleas to 19 counts of wire fraud, money laundering and bankruptcy fraud.
Prosecutor Gary Humble said he faces up to 20 years in prison on some of the counts.
His trial was set for Dec. 15.
Rivas is facing similar federal fraud charges in Spartanburg, S.C., where he also had an office.
He has been in jail in South Carolina since his arrest in late June.
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