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Ponzi Scheme

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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Wash. Investment Adviser In $3.6M Ponzi Scheme Gets 9 Years

Wash. Investment Adviser In $3.6M Ponzi Scheme Gets 9 Years

By Jon Hill of Law360.com An investment guru who copped to fleecing investors out of more than $3.6 million in a nine-year Ponzi scheme was sentenced in Washington federal court on Thursday to serve nine years in prison and pay his victims more than $3.6 million in restitution. Bellevue, Washington-based investment adviser Chris Young Yoo pled guilty in March to wire fraud and making false statements as part of a deal to cooperate with prosecutors in exchange for their recommendation of a lesser seven-year prison sentence, but U.S. District Judge Thomas S. Zilly opted for a sentence within the eight- to 10-year...

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Chicago ‘Mini-Madoff’ Gets Nearly 6 Years In $1.7M Fraud

Chicago 'Mini-Madoff' Gets Nearly 6 Years In $1.7M Fraud

By Jon Hill of Law360.com A 26-year-old Chicago man was sentenced Wednesday in Illinois federal court to nearly six years behind bars after copping to conning investors out of more than $1.7 million in what federal prosecutors have called a “mini-Bernie Madoff scam.” Randall Rye, who pled guilty in April to one count of wire fraud in connection with the scam, was ordered by U.S. District Judge Ronald A. Guzman to serve a 70-month sentence in federal prison followed by three years of supervised release and pay back his investors $1.72 million in restitution. The prison term handed down by the judge is at the...

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CFTC Wins Asset Freeze In $13M Churchgoer Ponzi Suit

CFTC Wins Asset Freeze In $13M Churchgoer Ponzi Suit

CFTC Wins Asset Freeze In $13M Churchgoer Ponzi Suit By Martin O'Sullivan of Law360.com An Arizona federal judge issued an asset freeze Thursday against a man accused by the U.S. Commodity Futures Trading Commission of tricking Mormon church members into investing in a $13 million trading scheme that funded his personal expenses and Ponzi scheme payments. In its May complaint, the CFTC says that Cory Williams, founder of Williams Advisory Group LLC, told at least 40 investors that they were earning a pretty penny while he traded futures contracts on their behalf, when he was actually using $3.4 million of their investments on...

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