Irvine Marketing Executive Arrested for Fraud

The top executive of Irvine-based marketing firm FundAmerica Inc. was arrested Thursday on fraud charges in connection with a Florida investigation into whether the company ran an illegal pyramid scam, Florida regulators said.

Robert T. Edwards, president of FundAmerica, was arrested in Wilmington, Del. He is being held on charges of criminal organized fraud and unlawful lottery activity, said Joe Bizzarro, spokesman for the Florida Attorney General’s Office.

FundAmerica confirmed in a statement Thursday night that its offices in Irvine were searched in connection with an investigation by the Florida attorney general.

A “cease and desist order” was also issued by the Florida attorney general against the company in connection with the investigation and accused the company of running a scam that bilked Florida residents out of more than $8 million.

FundAmerica’s statement said the company was “shocked by the actions of the Florida statewide prosecutor’s office.”

Clifton H. Jolley, a FundAmerica spokesman, said the company has been operating for four years and that the Florida regulators did not attempt to contact it before issuing the cease and desist order. The company also said regulators did not understand the difference between what FundAmerica does and an illegal pyramid scheme.

“If you’re going to search our offices, for heaven’s sake, search it for something we haven’t already given you,” Jolley said. “We have fully cooperated. This may have been done for dramatic reasons.”

Jolley said the company was still operating, but he said the Florida state actions would have a “chilling effect.”

The Associated Press contributed to this report