Keith Franklin Simmons pled not guilty to securities fraud and money laundering charges during a preliminary hearing of U.S. District Court last week in Charlotte.

The Ashe resident allegedly defrauded 240 investors of $35 million from April 2007 to September 2009. He allegedly operated a “ponzi” style scheme to induce investors to invest in Black Diamond Capital Solutions, LLC and “other related entities.”

Court documents claim that Simmons lulled investors into believing that he was placing their money into a foreign currency exchange platform when in reality he pocketed the funds to pay off new investors and to fund his “lavish lifestyle.” He later admitted to authorities that he never placed investors’ funds in any foreign platform and stated that he never found a suitable market for their money, court records indicate.

He lulled investors, an indictment stated, by “making false and fraudulent representations, omitting material facts, and telling deceptive half-truths.” Simmons even told investors that they had made interest on their investments and purported this on monthly statements when in fact no interest was gained on the platform and the monthly statements were fictionalized.”

On Friday, Jan. 29 a Standard Criminal Discovery Order was entered into the court to outline how evidence and information used in the trial will be handled between the defense counsel and prosecution. Most of the orders outlined in the document are said to follow the Federal Rules of Criminal Procedure.

According to the order, the U.S government “shall disclose to the defense counsel all Brady material which is in the possession, custody or control of the government.” This order is in compliance with the 1963 case of Brady v. Maryland, which requires prosecutors to fully disclose to the defendant all exculpatory evidence that the prosecution may have.

The prosecution must disclose to the defense any evidence it will offer no later than two weeks before the scheduled date of trial, the order read.

The order also states that Simmons’ defense team will be permitted to inspect and photocopy any information that is discoverable prior to his trial. In addition, the government will not be required to produce a list of the witnesses it will call at trial as outlined in a House Committee report. Although the U.S Attorney maintains an Open-File policy in the Western District, witness lists will “not be discoverable absent a special showing of need.” That need must be more, the document states, than a general need to prepare for trial or cross-examination. The prosecution, the order reads, will have until one week prior of Simmons’ trial to release the names of government witnesses available to the defense for interviews.

A motion to continue Simmons’ trial to April, 5 at 9:30 a.m. in Charlotte was entered on Tuesday.