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Tag Archives: Ponzi

Utah Man and Canadian Citizen Indicted In Georgia for Conspiracy, Mail and Wire Fraud, May Have Been Conned by Their European Contacts

Posted in Fraud, indictment

As reported in the Salt Lake Tribune, Thomas Repke of Holladay, Nevada, has been indicted in the U.S. District Court for the Northern District of Georgia on 22 counts of conspiracy, mail fraud and wire fraud. The charges are based on allegations that Mr. Repke, through the companies Coadum Capital and Mansell Acquisition Co., allegedly defrauded… Continue Reading

Acquittals in Ponzi Prosecution Across the Pond: Jury Acquits Imperial Consolidated Execs Fraser and Brook

Posted in Ponzi Schemes

UK citizens Lincoln Julian Fraser and Jared Bentley Brook, former executives with the Imperial Consolidated Group (ICG) were acquitted today at the Old Bailey at the conclusion of a nearly nine month trial, according to the Guardian and the Telegraph. The jury acquitted Mr. Fraser and Mr. Brook of one count of conspiracy to defraud,… Continue Reading

SEC Charges Florida and Canadian Residents Over $300 Million Gold Mining Investment Ponzi Scheme

Posted in Securities and Exchange Commission Proceedings

The U.S. Securities and Exchange Commission charged four Canadian citizens and two Florida residents for an alleged Ponzi scheme which defrauded more than 3,000 investors across the U.S. and Canada of approximately $300 million, according to an SEC press release. The SEC has filed a complaint alleging that Milowe Allen Brost and Gary Allen Sorenson… Continue Reading

DOJ Returns $40 Million to Japanese Investors from $1 Billion Filipino Shrimp Farming Ponzi Scheme

Posted in Foreign Crimes, Fraud

In a press release by the Department of Justice today, the Department announced that, in cooperation with the Ministry of Justice of Japan, it has recovered more than $40.2 million in proceeds from an alleged $1 billion Ponzi scheme by a Japanese citizen, Isamu Kuroiwa, involving investments in Filipino shrimp farms.   Kuroiwa operated "World… Continue Reading

Ponzi and Check Kiting Schemes by Georgia Mortgage Broker Cost Victims $23 Million

Posted in Fraud, Ponzi Schemes, Sentencing

According to a press release by the U.S. Attorney’s Office for the Northern District of Georgia, Edward William Farley, of Hoschton, Georgia, was sentenced to 25 years imprisonment today in the U.S. District Court for the Northern District of Georgia for causing more than $23 million in losses to mortgage lenders in a real estate investment… Continue Reading

The SEC’s Case Against Sir Robert Allen Stanford — A Case Study in Investigative and Enforcement Failure

Posted in Fraud, Securities and Exchange Commission Proceedings

Since last year, we’ve followed the government’s investigation and prosecution of Texan and Antiguan financier Sir Robert Allen Stanford for allegedly defrauding investors of billions in a Ponzi scheme. Well, as set forth in a 150 page Report of Investigation by the U.S. Securities and Exchange Commission Office of the Inspector General (OIG), the SEC… Continue Reading

South Carolina Man Sentenced for $2.5 Million Ponzi Scheme

Posted in Fraud

The Ponzi scheme of the day involves Gene Sullivan, of Rock Hill, South Carolina. According to the Rock Hill Heraldonline, Sullivan defrauded mostly elderly investors of more than $2.5 million over nearly two decades. Sullivan was sentenced in the U.S. District Court for the District of South Carolina to 30 months imprisonment. 63 year-old Sullivan, a… Continue Reading

Tom Petters, The “Minnesota Madoff,” Gets 50 Years Out of Potential 335 Years for $3.7 Billion Ponzi Scheme

Posted in Fraud, Ponzi Schemes, Sentencing

Former Minnesota billionaire and former owner of Polaroid and Sun Country Airlines Tom Petters was sentenced to 50 years imprisonment yesterday by the U.S. District Court for the District of Minnesota, according to the Associated Press. Petters, 52, was charged with a $3.7 billion Ponzi scheme–the largest in Minnesota history– which had over 500 victims and… Continue Reading

Eleventh Circuit Hears Arguments From NFL and Retired Players in Appeal Over Suit Arising From $11 Million Ponzi Scheme

Posted in Fraud, Noteworthy Cases

Today’s Fulton County Daily Report contains a story concerning Tuesday’s oral arguments before the Eleventh Circuit Court of Appeals in an appeal by retired professional football players against the National Football League and the NFL Players Association. The former players are seeking to reverse a ruling last year dismissing the players’ suit against the NFL and… Continue Reading

SEC Charges Prominent South Florida Cuban-American Couple with $135 Million Ponzi Scheme

Posted in Fraud, Noteworthy Cases

The Securities and Exchange Commission has charged prominent Miami businessman Gaston E. Cantens and his wife, Teresita Cantens, with allegedly running a $135 million Ponzi scheme targeting elderly Cuban-Americans, according to the Miami New Times. Specifically, the Cantens allegedly used their development company, Royal West Properties, to sell promissory notes to finance the purchase of properties,… Continue Reading

Edward Stein, Architect of $46 Million Hedge Fund Ponzi Scheme, Sentenced to 9 Years

Posted in Fraud, Noteworthy Cases

Edward T. Stein, a former hedge fund manager, was sentenced to nine years in prison in the U.S. District Court for the Eastern District of New York for a Ponzi scheme which defrauded investors of $46 million, according to BusinessWeek. Stein was arrested last April and pled guilty last June to counts of securities fraud… Continue Reading

Rothstein Enters Guilty Plea

Posted in Fraud, High Profile Cases, Sentencing

Of course we knew it was coming, but disbarred Fort Lauderdale attorney Scott Rothstein, architect of a $1.2 billion Ponzi scheme selling phony interests in settlements in employment and civil cases, pled guilty today in the U.S. District Court for the Southern District of Florida to charges of racketeering, fraud and money laundering, as reported… Continue Reading

Sir Robert Allen Stanford’s Congressional Ties and Prison Blues

Posted in High Profile Cases

So whatever happened to indicted billionaire Sir Robert Allen Stanford? Well, not much, as reported by the Houston Chronicle. Stanford, who is charged with allegedly defrauding investors of more than $7 billion, is still incarcerated, despite his extensive efforts to secure release prior to his trial since his arrest in June of last year. Stanford… Continue Reading

Rothstein Investigation Widens to Include Attorneys, Police Chief; Pols Return Donations

Posted in Fraud, High Profile Cases

The fallout from Fort Lauderdale attorney Scott Rothstein’s alleged fraudulent scheme to bilk investors out of hundreds of millions continues to fall. Florida Governor Charlie Crist has told the media that he will return campaign contributions received from Rothstein and employees of his law firm, a total of $76,250. The announcement by Crist follows a… Continue Reading

Fort Lauderdale Attorney Scott Rothstein Pleads Not Guilty to Information Alleging $1.2 Billion Dollar Ponzi Scheme

Posted in False Claims, Forfeiture, Fraud, High Profile Cases, Money Laundering, Securities Fraud

  In response to allegations uncomfortably similar to those against former New York celebrity lawyer and arch Ponzi-schemer Marc Dreier, Fort Lauderdale attorney Scott Rothstein, head of Rothstein, Rosenfeldt and Adler, P.A., appeared in response to a criminal information in the U.S. District Court for the Southern District of Florida on Tuesday. The information charges… Continue Reading

Sir Robert Allen Stanford Roundup

Posted in High Profile Cases

The Blog is getting caught up today on the news surrounding former wealthy financier, alleged Ponzi schemer and cricket fanatic Sir Robert Allen Stanford. First, last Wednesday, the Associated Press reported that Stanford allegedly lobbied the U.S. to permit Cuba to participate in an international cricket tournament. One of Stanford’s companies, Stanford Financial Group, paid… Continue Reading

DeKalb County Man Arrested in Multimillion Dollar Ponzi Scheme; Victims Included Parents

Posted in False Claims, Fraud, Money Laundering, Noteworthy Cases

  As reported by the Atlanta Journal-Constitution and WSB Radio, Anthony Ray, a DeKalb County resident, solicited money from investors by promising them large returns from real estate investments by his company, Key Funding Group. He would frequent local churches to locate victims, making presentations to the congregations. Ray lulled his victims by giving them… Continue Reading

Sir Allen Stanford Remains in Custody Pending Appeal

Posted in False Claims, Fraud, High Profile Cases, Money Laundering

As we have noted, the prosecution of wealthy, international financier Sir Robert Allen Stanford has been characterized from the outset by vigorous disputes over bond for Stanford. The prosecution has argued that Stanford poses a risk of flight given his international connections and the potential that he possesses resources hidden overseas. The defense, led by… Continue Reading

Dreier Sentencing Next Monday: Defense Wants 10 to 13 Years/Government Wants 145 Years or Life

Posted in Fraud, High Profile Cases

As reported by Law.com, the sentencing of celebrity attorney and Ponzi schemer Marc Dreier is scheduled for next Monday, July 13. Dreier was arrested last December for defrauding investors and clients of more than $740 million through a series of schemes. A full history of the Dreier saga is set forth here. He pled guilty… Continue Reading

This Week’s Homegrown Ponzi Scheme

Posted in Noteworthy Cases

Yet another Ponzi scheme has surfaced in Georgia. As reported by the Macon telegraph his past Tuesday, U.S. marshals in Denver arrested Gary Hutcheson and Saundra McKinney Pyles of Macon. Hutcheson and Pyles had been indicted on April 22 in the U.S. District Court for the Middle District of Georgia on five counts of mail… Continue Reading