RADFORD, Va. -

A Radford man has been charged by a federal grand jury for allegedly bilking investors out of more than $590,000 with promises of high interest returns on investments in his company.

Charles Shomo, 63, of Radford, faces charges including three counts of mail fraud, two counts of securities fraud, and one count of money laundering in an indictment returned Thursday.

According to the indictment, in 1999 Shomo found P&G Enterprises LLC, a business that was originally established to purchase and set up retail ATM and credit card processing systems throughout Virginia, West Virginia and North Carolina. The company was supposed to develop revenue from fees charged to users who got cash from P&G ATMs and from retailers that used P&G’s credit card processing service.

Allegedly, between December 2006 and June 2013 Shomo solicited investors, saying that investor funds would be used to load ATM units and generally fund the operation of the ATM business. In return, Shomo offered investors promissory notes that typically matured over a one-year time period and paid an annualized interest rate of at least 5.95 percent. Without the investors' knowledge, Shomo was using their funds for his personal expenses and to help with funding an unrelated scooter business, according to a news release.

Shomo is also accused of using new investors’ funds to pay existing P&G note holders.

The indictment claims that between March 2010 and June 2013, Shomo received in excess of $595,000 in proceeds from the sale of P&G promissory notes to investors.

Charges were filed following a thorough and cooperative investigation by the United States Postal Inspection Service, the Virginia State Corporation Commission, the Commonwealth’s Attorneys’ Offices for Giles, Smyth, Floyd and Wythe counties, along with the Sheriff’s Offices for Giles, Smyth, Floyd, Wythe and Pulaski counties.

Assistant United States Attorney C. Patrick Hogeboom III and Gauhar R. Naseem, Associate General Counsel-Financial Services, Office of General Counsel for the Virginia State Corporation Commission will prosecute the case for the United States.

A Grand Jury Indictment is only a charge and not evidence of guilt. The defendant is entitled to a fair trial with the burden on the government to prove guilt beyond a reasonable doubt.