FARGO - A Texas man accused of bilking investors from North Dakota and elsewhere out of millions of dollars is facing federal charges of money laundering, wire fraud and conspiracy.

Verlin Swartzendruber, 56, of Laredo, Texas, is scheduled for arraignment Thursday on 11 felony counts. Court documents show he was arrested last month, but the case was not made public until Wednesday.

The indictment accuses Swartzendruber of defrauding investors with a bogus bank trading program. One of his alleged partners, Minot commodities broker Frederick Keiser Jr., was sentenced last November to 12 years in prison after a jury found him guilty on 22 counts.

U.S. Attorney Drew Wrigley would not talk about the case. Swartzendruber's attorney, Clint Broden of Dallas, could not be reached for comment.

Prosecutors said Swartzendruber and Keiser used foreign corporations, offshore bank accounts and other means to hide money and avoid paying federal income taxes. Keiser's attorney said during sentencing that Swartzendruber set up the scheme and gave the orders.

The government is asking Swartzendruber to forfeit nearly $15 million.

Court documents show that Swartzendruber warned Keiser to be careful who he asked to participate in the program and advised him to shred documents.

In one e-mail exchange shown in the indictment, Keiser asks Swartzendruber whether he should recruit a person from Fargo with high visibility. Swartzendruber told Keiser to "follow his gut," and said the risk might not be worth an investment of $10,000 to $25,000.

"You will be a millionaire without him," Swartzendruber wrote.

Swartzendruber's son, Byron, also is charged with conspiracy to defraud the United States. His attorney asked to have the case thrown out, saying the government failed to indict his client within the time required by law. U.S. District Judge Ralph Erickson denied that motion earlier this week.