Two local investments advisers are under indictment for allegedly running a Ponzi scheme and using clients' money for hotels, restaurants, jewelry, spas, and to pay other investors, the U.S. Attorney's office in Philadelphia announced Friday.

Carl Frederic Sealey, 42, chairman and chief executive officer, and Eric Enge, 44, vice chairman and chief operating officer of  a Philadelphia-based global private equity investment firm have been charged with conspiracy to defraud individuals and obtain their money and property, acting U.S. Attorney Louis D. Lappen stated.  Sealey and Enge operated under the company names of Global Standard Industries and SEK Industries.

From 2013 to 2016, about 21 investors were told their money would be used for short-term loans, operating expenses, real estate filings and other projects that would return 8.5 to 10 percent earnings in three months. The investors lost more than $1.5 million in investments, the indictment stated.