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Posts Tagged ‘Ponzi Schemes’

“Green” Ponzi Scheme Uncovered

November 17th, 2009

Before You Invest

The plethora of Ponzi schemes uncovered in the wake of Stanford and Madoff may be joined by a similar scheme with a new twist: green investment fraud. If the Securities and Exchange Commission (SEC) is correct, four individuals and two companies based out of Colorado and Pennsylvania defrauded mainly elderly investors out of $30 million through a purportedly green investment opportunity.

The SEC has charged Wayde and Donna McKelvy, through their Denver-based company Speed of Wealth LLC in conjunction with two Mantria Corporation executives, Troy Wragg and Amanda Knorr, with orchestrating the Ponzi scheme.

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Posted in Finance Fraud

Tags: Corporation Executives, Elderly Investors, Investment Fraud, Investment Opportunity, Investor Funds, Knorr, Madoff, Mckelvy, New Investor, New Twist, Ponzi Scheme, Ponzi Schemes, Radio Television, Retirement Accounts, Securities And Exchange Commission, Securities Laws, Stocks Bonds, Television Internet, Traditional Investments, Wayde

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SEC Charges Three Men in South Florida with Operating a Ponzi Scheme and Committing Affinity Fraud

October 20th, 2009

Before You Invest

Three South Florida men have been charged with operating a Ponzi scheme as well as committing affinity fraud through their two companies: HomePals Investment Club LLC and HomePals LLC.

Ronnie Eugene Bass Jr., Abner Alabre, and Brian J. Taglieri are charged with defrauding investors in the amount of $14.3 million.

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Posted in Finance Fraud

Tags: Abner, Affinity, Assertions, Criminals, Florida Men, Fraud, Ill Gotten Gains, Investment Club, Investment Funds, Investment Opportunity, Investor Funds, Mutual Trust, Ponzi Scheme, Ponzi Schemes, Proprietors, South Florida, Taglieri, Three Men, Trading Commodities, Trading Stock Options

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JPMorgan Chase, Credit Suisse and Morgan Stanley pay $100m Ponzi fine

October 11th, 2009

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JPMorgan Chase, Credit Suisse and Morgan Stanley have agreed to pay out $100 million over claims they were involved in a Ponzi scheme at the now bankrupt mortgage lender American Business Financial Services (ABFS).

JPMorgan Chase, Credit Suisse and Morgan Stanley pay $100m Ponzi fine

The lawsuit alleged that ABFS had become insolvent in 2000, but created the impression it was still financially viable with the assistance of the Wall Street firms.

Bear Stearns, which is now part of JPMorgan Chase, was also named in the lawsuit.

George Miller, the ABFS’s bankruptcy trustee, was seeking at least $750 million from the banks on behalf of more than 20,000 people who lost their life savings when ABFS went bankrupt.

JPMorgan Chase paid $55 million on behalf of it and Bear Stearns to settle the case, while Credit Suisse paid out $37.5 million and Morgan Stanley $7.5 million.

The companies denied any wrongdoing.

Last month, changes to the Security and Exchange Commission’s investigations policies into Ponzi schemes were recommended after it missed Bernard Madoff’s $50 billion worldwide fraud for years.

Posted in Finance Fraud

Tags: 100 Million, 5 Million, Abfs, American Business Financial Services, Bankruptcy Trustee, Bear Stearns, Bernard Madoff, Business Financial Services, Chase Credit, Credit Suisse, George Miller, Jpmorgan Chase, Morgan Stanley, Mortgage Lender, Ponzi Scheme, Ponzi Schemes, Security And Exchange Commission, Wall Street, Wall Street Firms, Wrongdoing

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FBI chief targets “next wave” of fraud

June 6th, 2009

Before You Invest

FBI director Robert Mueller has said the bureau is working with regulators to ensure the government’s bailout funding and economic stimulus packages do not fall victim to the “next wave” of financial fraud.

Robert Mueller told the Economic Club of New York that federal investigators are working with officials from the Securities and Exchange Commission and the inspector general of the Troubled Asset Relief Program (Tarp) to ensure it detects potential abuse of taxpayer funds at an early stage, Reuters reports.

“With billions of dollars at stake – from the purchase of troubled assets to improvements in infrastructure, healthcare, energy and education – even a small percentage of fraud would result in substantial taxpayer losses,” he said.

In March, Tarp inspector general Neil Barofsky told Congress that the US had paid out over $3 trillion to support banks and other firms, which would “inevitably” attract those looking to profit criminally.

Mr Mueller added that the FBI is also ramping up its resources for combating white collar crime in New York, the home of Wall Street.

He said the bureau is currently pursuing 1,300 cases of suspected securities fraud, including a number of Ponzi schemes, as well as over 580 corporate frauds.

Posted in Finance Fraud

Tags: Bailout, Billions Of Dollars, Corporate Frauds, Director Robert, Economic Club, Economic Stimulus, Fbi Director, Federal Investigators, Financial Fraud, Inspector General, Next Wave, Ponzi Schemes, Regulators, Reuters Reports, Robert Mueller, Securities And Exchange Commission, Securities Fraud, Taxpayer Funds, Troubled Assets, White Collar Crime

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Mini-Madoffs spreading via YouTube

April 14th, 2009

Before You Invest

A rash of Ponzi schemes are using the video sharing website YouTube to promote seemingly legal ‘cash gifting’ programs that are in fact just fraudulent pyramid schemes, according to reports.

The Better Business Bureau claims to have identified 23,000 clips promoting these ‘gifting’ schemes that together have received almost 60 million views, the Los Angeles Times states.

While the videos do not usually ask for money directly, they send viewers to websites where they are asked to sign up for a legitimate-looking ‘gifting program’ for a fee of between $150 and $5,000.

They are also urged to recruit more people to the program with the promise of rewards for all, the newspaper said.
Alison Southwick of the Better Business Bureau said: “They make it seem like it’s legal and an easy way to make money, but it’s nothing more than a pyramid scheme.”

The newspaper dubbed the scams “mini-Madoffs” because they work on the same model as the $65 billion fraud committed by disgraced Wall Street broker Bernard Madoff.

Mr Madoff pleaded guilty to orchestrating the largest Ponzi fraud in history last month.