Man Pleads Not Guilty to Running $2M Ponzi Scheme

By Beacon Staff

HELENA – A 63-year-old East Helena man accused of taking more than $2 million from investors to further a Ponzi scheme has pleaded not guilty to three felony charges.

Arthur L. Heffelfinger, a broker with KMS Financial Services, appeared in District Court on Thursday on charges of operating a pyramid promotional scheme or Ponzi scheme, theft and exploitation of an older person. Judge Kathy Seeley set his trial for April 26.

Heffelfinger is accused of operating the scheme from February 2001 through September 2009. An investigation was launched after a client of his called a KMS compliance officer last September to report that Heffelfinger had converted to his personal use about $409,000 of her money.

His clients included residents of Lewis and Clark, Jefferson, Broadwater, Missoula, Lake, Judith Basin, Gallatin and Ravalli counties.

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