A U.S. Virgin Islands financier accused by the Securities and Exchange Commission of running a $105 million Ponzi scheme was charged with criminal fraud and taken into custody in Chicago. Daniel Spitzer, of St. Thomas, controlled a group of 12 investment funds, collectively called the Kenzie Funds, through which he raised more than $100 million from 400 investors between 2004 and 2010, according to a sworn statement by U.S.
Posts Tagged ‘Ponzi Schemes’
Virgin Island Financier Accused of Ponzi Scheme Fraud
August 8th, 2010 
Before You Invest 
Posted in Finance Fraud 
Tags: Barrington Illinois, Business Expenses, Civil Lawsuit, Criminal Complaint, Criminal Fraud, Federal Custody, Investment Funds, Investor Money, Magistrate Judge, Patrick J Fitzgerald, Perpetrator, Ponzi Schemes, Postal Inspector, Reda, Securities And Exchange Commission, Spitzer, Swindler, Sworn Statement, Virgin Island, Virgin Islands 
Comments OffUptick in Ponzi Scheme Filings At FINRA Arbitration
August 2nd, 2010 Before You Invest A year after Bernard Madoff went to prison for masterminding the largest-ever Ponzi scheme, lawyers and regulators say a growing number of these scams are preying on investors and their hunger for high yields.Razor-thin interest rates are squeezing the flow of income to Americans putting savings into CDs, money-market accounts and bonds.
Posted in Finance Fraud Tags: Arbitration, Bernard Madoff, Broker Dealers, Charles Ponzi, Financial Crisis, Financial Industry Regulatory Authority, Investment Business, Money Market Accounts, Namesake, Phony Investment, Ponzi Scheme, Ponzi Schemes, Promissory Notes, Real Estate Investment, Real Estate Investment Trusts, Reits, S Broker, Scams, Stock Markets, Uptick Comments OffFINRA Warns About Social Media Ponzi Schemes
July 16th, 2010 Before You Invest The Financial Industry Regulatory Authority (FINRA) warned investors today about Internet-based Ponzi schemes called high-yield investment programs (HYIPs), which purport to offer returns of 20, 30, 100 percent or more per day. HYIPs are unregistered investments sold by unlicensed individuals using sophisticated-looking websites.The con artists behind HYIPs are experts at using social media — including YouTube, Twitter and Facebook — to lure investors and make the illusion of social consensus that these investments are legitimate, but investors should know that HYIPs are just Internet-based scams.As FINRA’s investor alert HYIPs—Hazardous to Your Investment Portfolio points out, many HYIPs have a worldwide reach: the recently exposed Pathway to Prosperity scheme allegedly defrauded over 40,000 investors in over 120 countries of $70 million.
Posted in Finance Fraud Tags: Con Artists, Facebook, Federal Bureau Of Investigation, Financial Industry Regulatory Authority, Finra, Google, High Yield Investment, High Yield Investment Programs, Hyips, Investment Portfolio, Investor Alert, John Gannon, Ponzi Schemes, Search Engine Advertising, Searching The Internet, Senior Vice President, Social Consensus, Twitter, Unlicensed Individuals, Yield Investment Programs Comments OffMedical Capital Probe Launched
March 26th, 2010 Before You Invest Attorneys for MedCap CEO Sidney M. Field and President Joseph J. “Joey” Lampariello revealed the probe last week in an emergency request to use $150,000 per month in frozen assets for legal bills. U.S. District Judge David O. Carter denied the request, saying there was no emergency.
Posted in Finance Fraud Tags: District Judge David, Emergency Request, Foot Yacht, Frozen Assets, Garden Variety, Health Care Facilities, Home Stretch, Legal Bills, Little League, Markup, Medical Capital, Orange County History, Perfect Game, Ponzi Schemes, President Joseph, Receivables, Seaman, Securities And Exchange Commission, Securities Fraud, Unpaid Bills Comments Off“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 right, 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.
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 No Comments »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.
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 No Comments »JPMorgan Chase, Credit Suisse and Morgan Stanley pay $100m Ponzi fine
October 11th, 2009 Before You Invest 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).The lawsuit alleged that ABFS had become insolvent in 2000, but made the impression it was still financially viable with the help 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 No Comments »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 buy 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 No Comments »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 nearly 60 million views, the Los Angeles Times states. While the videos do not usually question for money directly, they send viewers to websites where they are questioned 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 simple 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.
Posted in Finance Fraud Tags: 60 Million, Alison, Bernard Madoff, Better Business Bureau, Cash Gifting Programs, Easy Way To Make Money, Fraud, Gifting Program, Los Angeles Times, Ponzi Schemes, Pyramid Scheme, Pyramid Schemes, Rash, Rewards, Scams, Southwick, Street Broker, Wall Street, Way To Make Money, Youtube No Comments »
