A grand jury has indicted four more men charged with operating the $40 million Black Diamond Ponzi scheme.

The indictment alleges that the the men claimed they were operating a legitimate hedge fund called Black Diamond, but weren't.

According to the government, the group solicited money from investors, many of them elderly and retired, using false and fraudulent claims about Black Diamond and the hedge funds they purported to run.

Black Diamond eventually collapsed without paying out any money, but the conspirators continued to bring in new investors to pay off old investors and to support their own lifestyles, according to the government.

The men: Jonathan D. Davey, 47, of Newark, Ohio, Jeffrey M. Toft, 49, of Oviedo, Fla., Chad A. Sloat, 33, of Kansas City, Mo., and Michael J. Murphy, 51, of Deep Haven, Minn., are all charged with four counts related to an investment fraud conspiracy involving Black Diamond.

The indictment also says that, as Black Diamond began collapsing, the defendants and others created a new Ponzi scheme and with a separate Ponzi account that Davey administered. The accused men then used money from new victims to make payments to people involved in the Black Diamond Scheme, and to find the defendant's lifestyles.

The indictment also charges Davey with tax evasion for claiming to the IRS on his 2008 tax return that $810,000 that Davey stole from victims was a “loan.” In reality, the indictment charges, Davey stole that $810,000, plus approximately $500,000 in 2009, from victims to build his personal mansion, according to authorities.

Other defendants have already been charged and sentenced in connection with the Black Diamond Ponzi Scheme, including some who had their sentences reduced after they cooperated with the government.

*Bryan Keith Coats, 51, of Clayton, N.C., pled guilty on October 24, 2011, to conspiracy to commit securities fraud and money laundering conspiracy. Coats is awaiting sentencing.

*Deanna Ray Salazar, 54, of Yucca Valley, Calif., pled guilty on December 7, 2010, to conspiracy to commit securities fraud and tax evasion. Salazar is awaiting sentencing.

*Jeffrey M. Muyres, 36, of Matthews, N.C., pled guilty on May 17, 2011, to conspiracy to commit securities fraud and money laundering conspiracy. Muyres was sentenced to 23 months imprisonment by Chief Judge Robert Conrad, Jr., on January 18, 2012.

*Roy E. Scarboro, 47, of Archdale, N.C., pled guilty on December 3, 2010, to securities fraud, money laundering, and making false statements to the FBI. Scarboro was sentenced to 26 months imprisonment by Chief Judge Robert Conrad, Jr., on May 4, 2011.