A former financial advisor in Lake Oswego, Ore., has been charged in federal court over allegations that he defrauded investors in a real estate investment scheme, the US Attorney’s Office for the District of Oregon announced.
Shayne Kniss ran Iris Capital Management, an investment firm. According to the allegations, Kniss offered clients four investments funds composed of residential properties in the greater Portland area that would be rehabilitated, upgraded, and resold at a substantial profit. Many of his clients were 65 years old or older.
From February 2011 to April 2013, Kniss’ funds received more than $4.3 million in investments from 47 people. According to the complaint, Kniss commingled investor money among the funds and used new investments to make payments to prior investors. He is also alleged to have used more than $500,000 of investor funds for personal use, including investing in a retail marijuana enterprise.
Kniss is set to make his first appearance before a US Magistrate Judge in Portland, where a plea will be entered and a trial date set.