Libyan Government Invested $500 million with Sir Allen

July 9th, 2009

According to the Financial Times, the Libyan government invested at least $500m with Sir Allen Stanford, “the Texas businessman accused by the US government of operating a $7bn Ponzi scheme.”  Court documents allege that:

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Another Fraudulent Pyramid Scheme

July 8th, 2009

Ponzi schemes and pyramid schemes have infiltrated our headlines and news stories.  While some are bigger and more popular than others, they all seem remarkably similar.  Someone sets up a scam promising returns that are too good to be true, he misrepresents a few key facts, and uses new investor money to pay old investors.  The scam gets too big and it collapses. Read the rest of this entry »

British Con Man Targets British Expats in Indonesia

July 7th, 2009

 

Britain’s Serious Fraud Office has charged British citizen Alan Edwin Gardner with defrauding British expatriates living in Indonesia.  

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Ex-pastor Charged in a Multimillion Dollar Fraud Scheme

July 6th, 2009

According to an article by Charles Wilson, of the Associated Press, former pastor Vaughn Reeves and three of his sons were charged with securities fraud in Indiana, for a scheme aimed at church members.  The secretary of state’s office said that arrest warrants have been issued for all four men, charging each with 10 felony counts.  Most of the victims lived in Indiana. Read the rest of this entry »

SEC Accuses Investment Adviser of Stealing Client Funds and Destroying Evidence

July 2nd, 2009

The Securities and Exchange Commission (“SEC” or “Commission”) has charged Omaha, Nebraska investment adviser, Envision Investment Advisors, LLC (“Envision”), and its principal Ryan M. Jindra, with stealing almost $775,000 from client assets. According to the Commission’s complaint:

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Don’t Wait Until Checks Bounce

July 1st, 2009

An article in The Rochester Democrat and Chronicle, by Gary Craig, brings to light another alleged oil and gas scam that raised more than $16 million from investors.  According to court documents, Ashvin Zaveri and his company Zaveri Oil & Gas, Ltd, are under investigation for defrauding investors, but no charges have been filed against Zaveri at this time.  Read the rest of this entry »

Covered Call Option Strategy a Cover for a Ponzi Scheme

June 30th, 2009

 

The Securities and Exchange Commission (SEC) has charged Moises Pacheco, of Chula Vista, California, and his companies, Advanced Money Management, Inc. (AMM), and Business Development & Consulting Co. (BD&C), with securities fraud.  According to the SEC, Pacheco used five self-styled hedge funds - AP Premium Value Funds I through IV and Capital Partnership Group, to raise $14.7 million from more than 200 people.  Also according to the Commission, Pacheco’s used principal invested by later investors to pay supposed profit distributions to earlier investors, in classic Ponzi fashion. According to the SEC’s complaint: 

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Believing a Lie?

June 29th, 2009

The Securities and Exchange Commission (SEC) charged Michael C. Regan and his firm, Regan & Company, for conducting a multi-million dollar Ponzi scheme and fraudulently raising over $15.9 million, and causing investors to lose at least $6.69 million through misappropriation and trading losses. Read the rest of this entry »

Misappropriation

June 26th, 2009

Unfortunately, when it comes to scams, misappropriation is a common theme.  And although I’m not a scamster myself, I assume misappropriating is tricky business—depositing money that’s not yours into your own accounts and using company money to pay your bills, while making sure your co-workers don’t catch wind of what’s going on.  But when you have a fellow executive willing to condone the whole thing, and even set up the wire transfers, it makes it pretty simple.  Read the rest of this entry »

$11 Million Ponzi Scheme Halted

June 25th, 2009

The Securities and Exchange Commission (SEC) filed an emergency action against David J. Hernandez, and his company NextStep Financial Services, Inc. for running a Ponzi scheme that raised more than $11 million from investors in at least 12 states, between at least February 2008 and the present. Read the rest of this entry »