TAMPA, Florida - The pitch sounded risk-free. Investors stood to earn 15 percent returns on investments backed by a bank guarantee.

But Millennium Trust was built on lies, and the Stonehedge investment group was a Ponzi scheme, according to an indictment issued in federal court on Thursday.

The two companies took more than $18 million from 300 investors in 21 states. Clearwater lawyer Greg Schultz, who set up the companies, said his operation was legitimate. Any losses are due to interference from state and federal investigators.

"We had assets in excess of twice the amount of the funds raised," Schultz said. It fell apart in October 1999 when state regulators raided his business, he said. The state Department of Banking and Finance won a court-appointed receivership to assume control of the company.

"The state of Florida didn't want us to succeed," Schultz said.

The banking industry would be hurt by a business generating 15 percent to 18 percent returns when banks offered less than 5 percent to investors. Schultz sued state and federal investigators in October, seeking $300 million in damages.

But Millennium was in default when the state got involved, said Banking and Finance investigator Robert Cornell.

Millennium misled investors, saying their money was put in large, well- established companies, Cornell said.

In addition, investors were told a Bank of Bermuda guarantee safeguarded their money. The guarantee didn't exist, Cornell said.

Investors were told 85 percent of their money sent to Stonehedge would go towards investments. Only about 30 percent did, the indictment says. The rest went into the defendants' pockets or was used to pay operating costs and prior investors.

Also charged are Florida residents Danny Wey, 54; Joseph Cuciniello, 54; Anthony Cuciniello Jr., 59; Dean Sinibaldi, 43; and Robert Phillips, 53; and Gene Tyrell, 53, of Arizona.

Irene Vanterpool, 80, said she lost her $155,000 investment.

The Port Charlotte retiree also had a smaller investment work out and was told by a Millennium solicitor to expect $2,100 a month.

She planned to live on that money and cover health treatments. Now she sometimes goes without her medicine because she can't afford it, she said. News of the indictment offered little comfort.

"I don't give a damn about a trial," she said. "I need my money."