‘[University of Southern California professor Barry] Landreth, 36, was arrested and charged in a $1.5 million Ponzi scheme that promised investors profits of up to 190 percent within 45 days. He made phony claims that his firm, Webster Realty Investors Inc., had real estate projects in Las Vegas and Chicago, according to the federal charges filed in U.S. District Court in Santa Ana.

Landreth and the firm, which operated out of his home, had no interest in those properties and instead he used the investors' money to pay off a few disgruntled clients. He also used the money to buy luxury cars and show horses, the FBI said. The horses alone were valued at $500,000.

"This case is particularly egregious in that Mr. Landreth is alleged to have enriched himself by convincing others, including his former students, to invest in his scheme," said J. Stephen Tidwell, assistant director in charge of the FBI in Los Angeles.

……University officials, in a prepared statement, said Landreth was a part-time lecturer and was placed on administrative leave this semester.

University spokesman James Grant said he could not give any more details about Landreth's relation with the university. [Why didn't he mention that Landreth is also a USC grad?]

Agents seized the luxury car and several show horses, along with brokerage and bank accounts alleged to be the proceeds of the fraud.

Landreth remained in custody Friday after a federal magistrate judge set bail at $500,000.

James Riddet, an attorney who represented Landreth at Friday's hearing, said he was "flabbergasted" at the bail amount because the government had only asked for $50,000.

Riddet said his client has no previous record, substantial roots in the community, and is married to a professor at Cal State Fullerton.’