Class Action

Ponzi Schemes

Latest News

8:00am - 5:00pm EST

Office Hours Monday - Friday

(574) 722-6676

Call Us For Free Consultation

Facebook

Twitter

News
 

Ponzi Scheme

Amish businessman ordered to pay $5.2M in scam targeting his own community

Amish businessman ordered to pay $5.2M in scam targeting his own community

By James Leggate of FOXBusiness.com A man who authorities said took advantage of his Amish heritage to recruit novice investors into a fraudulent scheme has been ordered to pay $5.2 million, most of it to his clients. Indiana resident Earl Miller’s 72 investors lost more than $4.1 million when his investments failed, according to a complaint from the Securities and Exchange Commission in 2015. He had encouraged people to put their retirement savings into his fund, which he had no experience in managing, by advertising “double digit annual returns” and promising a fixed-rate return of 8 percent to 12 percent per year,...

Continue reading

NWI tied to medical-device kickback scheme, federal lawsuit states

A surgeon with ties to Northwest Indiana received millions of dollars from a medical-device company accused by the federal government of paying off doctors to use its products, a recently filed federal whistleblower lawsuit reveals.

By Giles Bruce of The Northwest Indiana Times A surgeon with ties to Northwest Indiana received millions of dollars from a medical-device company accused by the federal government of paying off doctors to use its products, a recently filed federal whistleblower lawsuit reveals. An Indiana surgeon identified in the civil complaint only as "Dr. A" — and who performed surgeries in Hobart, Merrillville and Munster — generated "by far" more revenue for Huntley, Illinois-based Life Spine than any other physician, including more than $22.9 million overall and roughly a quarter of sales in 2016 and 2017 alone, the lawsuit alleges. The second...

Continue reading

SEC Sues Trucking Co. Exec Over Vehicle-Swapping Scheme

SEC Sues Trucking Co. Exec Over Vehicle-Swapping Scheme

By Reenat Sinay of Law360.com The president of a major trucking company subsidiary defrauded investors by hiding losses through a truck-swapping scheme and false financial reports, according to the U.S. Securities and Exchange Commission's suit filed in Indiana federal court Thursday. Danny R. Williams carried out the deceptive transactions in 2016 and 2017, when he was the head of Quality Companies LLC, a subsidiary of the Indianapolis-based Celadon Group Inc., which operates shipping lines in the U.S., Canada and Mexico, the SEC said. In order to avoid a write-off when Celadon wanted to offload old vehicles, Williams swapped 900 of Quality's old trucks...

Continue reading

Investors say ex-‘Fox & Friends’ host turned them into unwitting slumlords

Investors say ex-‘Fox & Friends’ host turned them into unwitting slumlords

By: Tim Evans and Tony Cook, Indianapolis Star In court filings and responses to online complaints, Morris contends he merely referred investors to Oceanpointe and several related entities. Investors' anger and lawsuits are misplaced, Morris said. “Clayton Morris and Morris Invest identify with the many investors who lost money through home-renovation, property-management, and other failures by Oceanpointe and its various corporate entities and employees," Hensel said in the emailed statement. "Clayton Morris and his family purchased properties and were similarly damaged by Oceanpointe’s misconduct. The Morris family and Morris Invest have lost hundreds of thousands of dollars. Clayton and Morris Invest deny all allegations...

Continue reading

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...

Continue reading

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...

Continue reading

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...

Continue reading

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...

Continue reading

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...

Continue reading

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...

Continue reading