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Ponzi Scheme

Recent Lawsuit Claims Chicago Cleric Steered $35 Million into his Ponzi Scheme

Recent Lawsuit Claims Chicago Cleric Steered $35 Million into his Ponzi Scheme

The following is an article authored by Law360’s David Matthews describing how a Chicago rabbi allegedly abused his trust with the Chicago Jewish community by convincing his followers to invest over $35 million into a Ponzi scheme. The facts as described by the following article contain the hallmarks of a typical Ponzi scheme.  These are: A person in a position of trust, such an accountant, cleric, preacher, insurance salesman, or an investment advisor; Abusing his trust by convincing his followers to invest their hard earned retirement savings; By promising big returns with little or no risk; The Ponzi schemer steals...

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Investment Adviser Gets 6.5 Years For $1.6M Ponzi Scheme

By John Petrick of Law360.com A federal judge on Monday sentenced a New Jersey man who pled guilty to running a Ponzi scheme that bilked $1.6 million from his clients to support his luxury lifestyle to six and a half years in prison. In addition to the prison time, U.S. District Court Judge Gerald J. Pappert in Pennsylvania also ordered defendant Carl Frederic Sealey to pay more than $1.5 million in restitution to the victims of his scheme, federal officials said. About 21 people invested more than $1.6 million with Sealey's investment firms Global Standard Industries and SEK Industries and lost $1.5...

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Failing Calif. Leasing Co. An $80M Ponzi Scheme, SEC Says

Failing Calif. Leasing Co. An $80M Ponzi Scheme, SEC Says

Introduction by attorney Scott Starr: Below is a reprint from Law 360 detailing yet another huge Ponzi scheme, this one occurring in California.  You will see from the below article that is alleged by the Securities and Exchange Commission that Ralph Iannelli, the president and founder of Essex Capital Corp., raised approximately 80 million dollars from investors in return for promissory notes, while falsely portraying his business as successful. The Essex Capital Corp. business purportedly was engaged in leasing assets to businesses, and then reporting back to their investors that they were very successful, instead of accurately reporting that the owners...

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SEC Sues Retail Investment Adviser Over $8M Ponzi Scheme

SEC Sues Retail Investment Adviser Over $8M Ponzi Scheme

Yet Another Ponzi Scheme Real Estate Development Scam By Scott Starr Law 360’s Dean Seal recently reported on yet another Ponzi scheme real estate development scam.  The article follows.  The scam described below is identical to two cases handled by Starr Austen & Miller within the last seven years, although unfortunately the cases we handled dealt with losses much larger than the $7 million referenced below.  If you or a loved one invested your hard earned money with an insurance agent, stock broker, or registered investment advisor for the purpose of purchasing real estate, and you are not getting all of your...

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Yet Another Classic Ponzi Scheme

By Scott Starr Attached below is an article that recently appeared on Law360.com, authored by Dean Seal, which describes another classic Ponzi scheme in a small Tennessee town of approximately 5,000 residents, Sparta, Tennessee. The Ponzi schemer scammed his friends, relatives, and fellow citizens out of $43 million. I would recommend that you read this short article carefully as it represents the classic hallmarks of a Ponzi scheme. Starr Austen & Miller has represented hundreds of victims of Ponzi schemers, just like the scam described in the article below. Ponzi schemers always follow the same basic format: They hold respected positions of...

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Stock Fraudsters Prey on the Retired

Starr Austen & Miller has represented over 1,400 investors who have lost their hard earned savings to bad brokers and investment fraud.  Almost always the victim is an elderly person or someone nearing retirement who is defrauded of all or nearly all of their retirement savings. The following story is a reprint from Law360.com, an article authored by Hayley Fowler, that summarizes a similar case. Bad stock brokers and bad investment advisors will quote high returns while touting the “safety” of the investment they are pushing.  This pitch is especially attractive to retired folks who are worried about stretching their retirement earnings...

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Judge orders ex-CEO to pay nearly $850K in Veros Ponzi scheme

Judge orders ex-CEO to pay nearly $850K in Veros Ponzi scheme

By Dave Stafford / The Indiana Lawyer A former finance company chief with a history of securities law violations has been ordered to pay almost $850,000 in connection with the sale of securities based on farm loans. Former Pin Financial LLC chief executive Tobin Senefeld of Indianapolis was ordered Tuesday to pay a total of $843,356 in a lawsuit the Securities and Exchange Commission filed against him, his firm and Veros Farm Loan Holding LLC. The SEC said defendants violated securities laws in a Ponzi scheme. Rather than funding current farming operations, as investors were told, proceeds of the securities were used to cover farms’...

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SEC Settles Ponzi Scheme Suit Against Ex-NFLer, Biz Partner

SEC Settles Ponzi Scheme Suit Against Ex-NFLer, Biz Partner

By Christine Powell of Law360.com A Massachusetts federal judge greenlit a deal Friday resolving the U.S. Securities and Exchange Commission’s allegations that a former NFL player, his business partner and three companies they founded together ran a $31.7 million Ponzi scheme that involved convincing investors they were helping provide short-term loans to professional athletes. U.S. District Judge Indira Talwani entered final judgment just one day after the SEC moved for the approval of the settlement in its civil enforcement action against William D. Allen, who played for the New York Giants, the Miami Dolphins and the New England Patriots; former banker Susan...

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Fake Hedge Fund Manager Accused Of Running Ponzi Scheme

Below is a recent article from Law360 that talks about a Ponzi-schemer defrauding his friends, clients, and their families out of nearly 19 million dollars.  The facts of this case are classic: 1)      Promises to get rich quick, 2)      Preying on folks who are trusting and unsophisticated, 3)      Lying about fictitious profits and positive returns while actually generating huge losses, and 4)      All or nearly all of the money is gone by the time the fraudster is caught. Starr Austen & Miller has represented hundreds of victims of such Ponzi schemes since 1982.  If you or a loved one is the victim of investment fraud, call Starr Austen &...

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Never Invest in a Company Started or Managed by Your Stockbroker, Insurance Agent, or Investment Advisor

The United States Securities & Exchange Commission recently sued a Colorado investment advisor for fraudulently convincing his clients to invest in a company he started and owned.  The SEC alleges that the investment advisor misrepresented his credentials, the purported safety of the investments he was selling, and his success in creating and operating such companies in the past.  These poor victims violated a cardinal rule of investing:   You should never invest in any company created or managed by your stockbroker, insurance agent, or investment advisor unless and until: You thoroughly check out the so-called “investment opportunity” by having your CPA...

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