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Ponzi Schemes

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Indiana Woman Convicted Of Conspiracy To Commit Mail Fraud, Wire Fraud, And Money Laundering In Advance-Fee Fraud Scheme Targeting Deaf And Elderly

Indiana Woman Convicted Of Conspiracy To Commit Mail Fraud, Wire Fraud, And Money Laundering In Advance-Fee Fraud Scheme Targeting Deaf And Elderly

By: Department of Justice, U.S. Attorney’s Office, Middle District of Pennsylvania The United States Attorney’s Office for the Middle District of Pennsylvania announced that on June 2, 2021, Donna L. Summerlin, age 62, of Fortville, Indiana, was convicted following a seven-day jury trial held before United States District Court Judge Jennifer P. Wilson of conspiracy to commit mail fraud and wire fraud and conspiracy to commit money laundering. According to Acting United States Attorney Bruce D. Brandler, Summerlin was charged with accepting over $1.2 million from victims of cross-border advance-fee schemes. Many of the identified victims were either elderly, deaf, or both....

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Greenwood Man Charged Federally for Alleged $14 Million Fraud Scheme

Greenwood Man Charged Federally for Alleged $14 Million Fraud Scheme

By: Department of Justice, U.S. Attorney’s Office, Southern District of Indiana (https://www.justice.gov/usao-sdin) Acting United States Attorney John E. Childress announced today that Daniel R. Fruits, 46, of Greenwood, Indiana, was charged by a federal grand jury for his alleged role in three separate fraud schemes, including a nearly $14 million fraud on an investor, an attempted mortgage fraud, and a vehicle title-washing scheme. “This financial investor gave his hard-earned money to someone whom he thought he could trust,” said Childress. “Instead, the victim’s money ended up in the hands of a self-absorbed thief who only cared about his interests. Living a life...

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New Palestine man charged in $1.2M investment fraud scheme

A New Palestine man has been charged in the alleged theft of $1.2 million through investment fraud.

By Lydia Gerike of the Indianapolis Star A New Palestine man has been charged in the alleged theft of $1.2 million through investment fraud. Bruce Wayne Ford, 47, faces 11 counts of securities fraud, wire fraud and money laundering, according to a release from Josh Minkler, U.S. Attorney for the Southern District of Indiana. Ford was arrested Sept. 11. Court documents said Ford offered financial advising services through his Greenfield-based Ford Financial and Insurance Services, but neither he nor the company were properly registered to provide those services. “If one investor had checked his registration, his entire scheme would have crumbled," Secretary of State Connie Lawson said in the release. "I encourage...

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Fake pastors scam churchgoers out of $28M in Ponzi scheme

U.S. authorities have charged three Maryland men, who presented themselves as pastors to defraud more than 1,000 church members and other investors in a $28 million Ponzi scheme.

By Anugrah Kumar of Christian Post U.S. authorities have charged three Maryland men, who presented themselves as pastors to defraud more than 1,000 church members and other investors in a $28 million Ponzi scheme. The three – identified as Dennis Mbongeni Jali, 35; John Erasmus Frimpong, 40; and Arley Ray Johnson, 61 – “allegedly recruited investors at churches, presenting themselves as pastors concerned about the investors’ financial freedom,” U.S. Attorney Robert K. Hur said in a statement. “The indictment alleges that instead, the defendants used new investments to further their Ponzi scheme and to fund their lavish lifestyles, including luxury vehicles and private...

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SEC Updates List of Firms Using Inaccurate Information to Solicit Investors

SEC has announced that it updated its list of unregistered entities that use misleading information to solicit primarily non-U.S. investors, adding 23 soliciting entities, eight impersonators of genuine firms, and seven bogus regulators.

Source https://www.sec.gov/news/press-release/2020-200 The Securities and Exchange Commission has announced that it updated its list of unregistered entities that use misleading information to solicit primarily non-U.S. investors, adding 23 soliciting entities, eight impersonators of genuine firms, and seven bogus regulators. The SEC's list of soliciting entities that have been the subject of investor complaints, known as the Public Alert: Unregistered Soliciting Entities (PAUSE) list (https://www.sec.gov/enforce/public-alerts), enables investors to better inform themselves and avoid being a victim of fraud. The latest additions are firms that SEC staff found were providing inaccurate information about their affiliation, location, or registration. Under U.S. securities laws, firms that solicit investors generally are required to register...

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Yet Another Ponzi Scheme

SEC filed lawsuit against a Wyoming “Live Wealthy Institute” alleging operated a real estate investment scam conning investors out of $170 million.

The Securities and Exchange Commission (SEC) recently filed a lawsuit against a Wyoming man, Dale Tenhulzen and his limited liability company “Live Wealthy Institute” alleging that Tenhulzen and Live Wealthy operated a real estate investment scam conning investors out of $170 million.  The scam roped in over a 1,000 investors in 35 states.  Most of the investors were elderly folks who liquidated their retirement funds for the purpose of investing.  These poor victims were conned with promises of “8 to 10 percent returns” in a very “safe, stable” investment. This alleged scam has all the hallmarks of a classic Ponzi scheme.  REMEMBER: ...

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SEC Requires Brokers to Act in Their Clients’ Best Interests

The new SEC rule that requires broker-dealers who make recommendations to their customers to act in their clients’ “best interest” takes effect on June 30, 2020.

By Scott L. Starr June 8, 2020 The new Securities and Exchange Commission (SEC) rule that requires broker-dealers who make recommendations to their customers to act in their clients’ “best interest” takes effect on June 30, 2020.  This is a significant change in the way stockbrokers have historically done their business. The old rule was that brokers need only make “suitable” recommendations to their clients.  Starting June 30, the brokers must at all times act in their clients’ best interests.  That new best interest rule will require the brokers to make complete disclosures about the investments they are recommending. For example, starting June...

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Indiana Secretary Of State Issues Advisory To Raise Awareness Of Private Offering Risks

Indiana Secretary Of State Issues Advisory To Raise Awareness Of Private Offering Risks

By WBIW.com The COVID-19 pandemic has caused significant disruption and anxiety to individuals and the financial markets. Because fraudsters often try to capitalize on current issues and problems to promote their scams, Indiana Secretary of State Connie Lawson today issued an investor advisory on exempt securities offerings, also known as “private placements,” in light of the coronavirus pandemic. A private placement is a securities offering that is not required by law to be registered with federal or state securities regulators. Private placements allow companies to sell stocks, bonds, or other securities to investors without completing the rigorous disclosures necessary in a registered...

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Indiana Secretary Of State Joins Task Force Cracking Down On COVID-19 Investment Scams

Indiana Secretary Of State Joins Task Force Cracking Down On COVID-19 Investment Scams

by: wbiw.com The Indiana Secretary of State’s Office announced that it has joined an international enforcement task force organized by the North American Securities Administrators Association (NASAA) to investigate fraudsters looking to capitalize during the novel coronavirus COVID-19 pandemic. “We are proud to join our colleagues in NASAA’s COVID-19 Enforcement Task Force,” said Secretary of State Connie Lawson. “Investment schemes related to COVID-19 are a significant threat to Hoosier investors, and fraudsters need to know that my office is dedicated to effectively protecting investors from COVID-19 investment fraud.” Through the Indiana Securities Division, the Secretary’s office is a member of NASAA, the membership organization...

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Banks and Brokerage firms can be liable for aiding and abetting ponzi schemes

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By Scott L. Starr Ponzi schemers rarely have the ability to carry out their nefarious conduct alone; instead, they need the assistance of brokers and banks to handle a variety of financial transactions.  Under some circumstances, these banks and brokerage firms may ultimately be found liable for aiding and abetting the Ponzi scheme. By way of example, Starr Austen & Miller a few years back represented a large group of Ohio investors who had invested in excess of $30 million with a local insurance salesman who was operating a Ponzi scheme. The Ponzi schemer ran all of the transactions through his brokerage...

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