Federal indictment alleges multi-million dollar investment scam centered in Sioux Falls
The federal government has charged a Sioux Falls man with a large-scale fraud and money laundering scheme that prosecutors say affected investors across the region and stretched into local financial institutions. According to court filings, Benjamin Paul Wiener, 43, faces 29 criminal counts including Wire Fraud, Money Laundering, Bank Fraud and Aggravated Identity Theft.
Wiener was indicted in June and
"pleaded not guilty to the indictment on July 10."The indictment alleges he used a series of companies to solicit investor funds with false statements, diverted the money for personal expenses and moved funds through banks and cryptocurrency exchanges to hide his activity.
Alleged pattern and scale
Prosecutors say the scheme operated in a pattern that used new investor money to cover earlier obligations when payouts ran short — a practice that, if proven, would have magnified losses as the operation continued. The government estimates total investor losses at about $20 million, and says the fraud touched victims in South Dakota, Minnesota and other states.
- Number of counts: 29
- Estimated loss to victims: $20 million
- Defendant: Benjamin Paul Wiener, 43
Entities named in the indictment
The charging papers identify a number of corporate entities that prosecutors allege Wiener used during the scheme. Those include:
- Benaiah Capital LLC
- Benaiah Holdings, Inc.
- Benaiah Digital Fixed Income LP
- Benaiah Digital LP
- Benaiah Management Company, Inc.
- Benaiah Enterprises, LLC
- Aslan Management, LLC
- Runway Four10
The indictment also alleges Wiener defrauded a Sioux Falls financial institution, securing a line of credit for $1,000,000, and that he moved funds through financial institutions and cryptocurrency platforms to conceal the origin and use of investor money.
Potential penalties and local impact
If convicted, the counts carry severe penalties under federal law. Sentences for the major charges listed in the indictment include: imprisonment and significant fines. Specifically:
| Charge | Maximum prison term | Maximum fine |
|---|---|---|
| Wire Fraud, Money Laundering | Up to 20 years | $250,000 |
| Bank Fraud | Up to 30 years | $1,000,000 |
| Aggravated Identity Theft | Mandatory minimum 2 years (consecutive) | N/A |
Restitution, supervised release and assessments to the federal Crime Victims Fund are also possible components of any sentence. For Sioux Falls residents, the case raises questions about investor protections, oversight of local lending and how cryptocurrency platforms are used in alleged financial crimes.
Next steps in the case
Wiener has pleaded not guilty and his matter will proceed through the federal court system. Investigations of alleged financial schemes can lead to additional charges or civil actions, and authorities sometimes work with state regulators and federal agencies when funds cross state lines or involve multiple financial institutions.
Local investors who believe they may have been affected by the scheme should preserve documents and statements and consider contacting law enforcement or a legal advisor. The indictment is a criminal charge, and as with all defendants, the allegations will be subject to proof in court.
This case underscores broader concerns about investment frauds and the role of emerging financial tools in laundering proceeds — a trend state and federal regulators have been watching closely as more capital and transactions flow through nontraditional channels.
