Former Lake Oswego Financial Advisor Accused of Defrauding Investors
PORTLAND, Ore. – Shayne Kniss, 42, formerly of Lake Oswego, Oregon, was charged today in federal court with defrauding clients of his investment firm, Iris Capital Management.
The criminal information alleges that Kniss offered clients, many of whom were 65 or older, four investment funds composed of residential properties in the greater Portland area that would be rehabilitated, upgraded and resold at a substantial profit. Between February 2011 and April 2013, 47 people invested over $4.3 million in the funds. The information alleges Kniss commingled investor money among the funds, used new investments to make payments to prior investors, and used more than $500,000 of investor funds for personal use, including investing in a retail marijuana enterprise.
Kniss will make his first appearance before a U.S. Magistrate Judge in Portland where a plea will be entered and a trial date set.
A criminal charge is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
This case was investigated by the FBI and is being prosecuted by Seth D. Uram, Assistant U.S. Attorney for the District of Oregon.