Ponzi Schemes Category
You have already read about Ponzi schemes. Don’t assume you can’t be victimized by these illegal programs. Most victims invested in them after they were told how great they were by someone they liked or trusted. People running schemes and scams use very sophisticated marketing tactics that are based on what you want to see and hear before you invest.
By: Matthew Arndt, CFA, CPA, CFP | January 22, 2010 | Illegal Schemes & Scams, Ponzi Schemes
The U.S. Securities and Exchange Commission alleges from 2007 through 2009, 51-year-old Steve W. Salutric a co-founder of investment advisery firm, Results One Financial in Elmhurst, IL, misappropriated several million dollars from his clients, one of which included a 96-year-old suffering from dementia.
According to the complaint, in addition to other crimes, Salutric embezzled over $400,000 [...]
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By: Daniel Chen | September 29, 2009 | Ponzi Schemes
This story just hit the news wires. The link http://www.fa-mag.com/fa-news/4513-broker-charged-in-massive-ponzi-scheme.html will take you to the complete article by, FA Magazine, a industry publication.
Read the article and see the lessons learned.
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By: Jack Waymire | August 30, 2009 | Ponzi Schemes, The Regulators
Bernie Madoff’s company was an SEC registered investment advisory firm when he voluntarily admitted he was running an illegal Ponzi scheme. He was not caught by a regulatory agency. In fact, being a regulated company may have helped him rip-off investors. They assumed he was legitimate because he was registered.
Why do so many bad [...]
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By: Jack Waymire | August 27, 2009 | Bad Products & Services, Ponzi Schemes
Frank Castaldi, Prospect Heights, IL, pleaded guilty to running a Ponzi Scheme for more than 20 years. More than 450 investors lost more than $77,000,000 in this fraudulent investment scam.
Castaldi convinced investors to invest in six month promissory notes that had yields of 10% to 15% and little or no risk. He also represented he [...]
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By: Jack Waymire | August 27, 2009 | Illegal Schemes & Scams, Ponzi Schemes
As follow-up to a previous blog post James Davis, the former Chief Financial Officer at Stanford Financial Group, pleaded guilty to investment fraud and obstruction of justice charges. Davis said he and his co-conspirators defrauded thousands of investors when they sold them $7 billion of CDs that were issued by the Antiqua-based Stanford International Bank. [...]
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By: Jack Waymire | August 24, 2009 | Illegal Schemes & Scams, Ponzi Schemes
Gary Hutcheson pleaded guilty to operating a Ponzi scheme in Macon, Georgia. He and an accomplice defrauded 50 investors, including prominent doctors, attorneys and church members, of millions of dollars when he told them their assets would be invested in a hedge fund named Georgia Ionics Fund, LLC.
Some of the investors knew Hutcheson 30 years [...]
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