Stoen, a founder of the investment firm Stone Rose LP, was charged with four counts of mail fraud and two counts of wire fraud Wednesday.
He allegedly raised millions of dollars from investors by claiming that the funds would be used for real estate projects in the Kansas City area as well as for Stone Rose fees and expenses, according to the indictment. Stoen allegedly misappropriated the Stone Rose funds for himself, concealing his scheme by giving investors a false financial review of the firm, officials said.
Stoen faces forfeiture of the $10 million in alleged fraud proceeds, plus a maximum penalty of 20 years in prison for each fraud charge as well as a $250,000 fine. His arraignment date has yet to be determined.