From Times staff reporter Mike Carter:

A Seattle federal grand jury has indicted a Bellevue man and two others in a $65 million pyramid scheme, according to the U.S. Attorney's Office.

Robert Miracle, 48, was arrested at his Eastside home this morning on charges contained in a 23-count indictment alleging conspiracy, mail fraud, wire fraud, money laundering and tax evasion. Miracle is expected to appear for arraignment this afternoon. Two other men, both from Malaysia -- Mukhtar Kechik and Fahimi Fisal -- are also charged. Both are fugitives and warrants have been issued for their arrests, according to U.S. Attorney's spokeswoman Emily Langlie.

The indictment alleges that Miracle operated a number of companies involved in oil development in Malaysia and Indonesia. The companies included Laramie Petroleum, whose offices were the target of a search warrant executed by criminal investigators from the Internal Revenue Service and the FBI in 2007.

The charges allege that Miracle and others represented to investors that they were making money from oil fields in Malaysia and Indonesia, when in fact they were paying off investors with money from other investors.

The charges alleged that, of the $65 million reported taken in, about $36 million was paid back out to investors to maintain an appearance that the companies were success. The charges allege that Miracle took the remaining $28 million and invested it in failed oil and gas developments, and to support a "lavish lifestyle."

Among items the government says Miracle bought -- and that prosecutors will seek to forfeit -- are a $38,000 two-carat diamond ring and a $27,000 painting. The indictment also alleges that Miracle used investors' money to take 10 members of his family on a $77,000 week-long cruise.