A Sacramento businessman was arrested today on charges of running a Ponzi scheme that defrauded senior citizens and others of at least $4.4 million.

William Arthur Sassman, an insurance agent, was accused of spending investors' money on cars, clothing and real estate for himself.

Sassman "solicited millions of dollars from California investors with promises of high returns on business and real estate investments," said Attorney General Jerry Brown, who announced the arrest. "In reality, Sassman looted their savings to prop up a Ponzi scheme, so he could buy homes and Ferraris."

Brown's office said Sassman used four companies to lure customers: InTex LLC; Formulating Insurance Agency; Formulating Investments; and Systematic Management Services. More than 50 customers, mainly in Northern California, put in $10,000 to $500,000 apiece.

Sassman told his clients he would put their money into investments ranging from foreign currencies to a Folsom strip mall, according to Brown's office.

Sassman, arrested at his home, was being held at the Sacramento County jail on $3.2 million bail.

(The Sacramento Bee:  by Dkasler)