A key figure in a multi-state alleged bank fraud scheme was arrested in Forest Lake on Monday afternoon. A host of federal agents executed an arrest warrant for Neulan D. Midkiff, 64, at his home in Forest Lake, 1319 SE Bay Drive. Agents from the FBI, the Internal Revenue Service and the U.S. Postal Service took part in the arrest, according to Forest Lake police who also provided assistance.

According to the U.S. Attorney's Office, Midkiff was slated to make a court appearance Tuesday afternoon. After his arrest on Monday, he was taken to the federal holding facility at the Sherburne County Jail in Elk River. According to officials there, Midkiff was being held for U.S. marshals on felony mail fraud charges.

In late 2005, Midkiff was named as a subject connecting Forest Lake to Atlanta and Dallas/Fort Worth with alleged involvement in a bank fraud, or Ponzi scheme, that collected millions of dollars from investors in multiple states. The scheme promised monthly investment returns of 4-12 percent with no risk to principal. The investigation was brought by the U.S. Securities and Exchange Commission.

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