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
Tag Archives: Ponzi
Acquittals in Ponzi Prosecution Across the Pond: Jury Acquits Imperial Consolidated Execs Fraser and Brook
Posted in Ponzi SchemesUK 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 ProceedingsThe 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
Florida Ponzi Con Man Scott Rothstein Gets 50 Years
Posted in Fraud, Ponzi Schemes, SentencingFlorida attorney and mastermind of a $1.2 billion Ponzi scheme, Scott Rothstein, was sentenced to 50 years yesterday in the U.S. District Court for the Southern District of Florida. The scam involved investments in non-existent settlements, and resulted in the loss of about $400 million to 400 victims. Rothstein wrote a letter to the court… Continue Reading
DOJ Returns $40 Million to Japanese Investors from $1 Billion Filipino Shrimp Farming Ponzi Scheme
Posted in Foreign Crimes, FraudIn 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, SentencingAccording 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 ProceedingsSince 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 FraudThe 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, SentencingFormer 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 CasesToday’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 CasesThe 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 CasesEdward 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, SentencingOf 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 CasesSo 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 CasesThe 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 FraudIn 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 CasesThe 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 CasesAs 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 LaunderingAs 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 CasesAs 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
Bail Battle Continues in Prosecution of Sir Robert Allen Stanford
Posted in High Profile CasesThe prosecution in the case of wealthy international financier Sir Robert Allen Stanford wants Stanford behind bars even before he has his day in court, arguing that his contacts abroad create a great risk that he will flee the country. Stanford, through his attorney, Dick DeGuerin, has countered that he possesses ties to the U.S…. Continue Reading
This Week’s Homegrown Ponzi Scheme
Posted in Noteworthy CasesYet 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
As Economy Slumps, Fraud Is on the Rise, Including in Georgia
Posted in Fraud, Noteworthy CasesAn article on Easter Sunday in the Atlanta Journal Constitution states what most readers will probably guess—that the gloom of the economy and financial desperation are fueling an increase in cases of fraud. The article notes that Ponzi schemes, mortgage fraud and other frauds have increased nationwide as well as in Georgia. It relates some… Continue Reading