I invested in a company that I believed was legit but was not and he contracts say he was -What can I do?

You may have a claim, but it depends on the details of how your investment was structured, what the CEO told you, and many other factors. You should speak to a lawyer, who can review the documents and facts in detail, and advise you whether you have a claim.

Your situation sounds a lot like the Madoff case that's in the news right now. Many of the investment companies that were funneling funds to Madoff because he was allegedly producing great returns are now being sued by individual investors upon the basis that they should have known better and are civilly liable as a result.

However, in your case, it appears that the CEO misrepresented his investments to you by saying he was doing the loans himself, when, in fact, he wasn't. That may turn the case into a fraudulent transaction or other criminal charges. You may be able to get the Federal Attorney Generals office involved or your local District Attorney may be interested in investigating it. That would be far cheaper than hiring your own attorney to sue them civiilly. But that would also work. Good luck with it.