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Senior Member
Posts: 2,086
Reply with quote  #1 
The progeny of Nancy Hoover and J. David Dominelli live on. Be careful out there.

I would bet the majority of the victims were accredited and qualified investors. 

From the Paper Source, more ponzi scum:

Robert Shapiro pleaded guilty to running a $1.3 billion Ponzi scheme through Woodbridge Group of Companies. Woodbridge's funds promised investors big returns on real estate notes. The scheme defrauded more than 9,000 victims. Shapiro admitted that he misappropriated between $25 million and $95 million of investor funds. Two alleged co-conspirators, Dane Roseman and Ivan Acevedo, are scheduled for trial next year.  
    Lynette Robbins and her company Knowles Systems raised about $147 million from investors by advising them that the investments in Woodbridge were “safe and secure.”  Floyd Powell was also barred by the SEC from selling securities; he sold Woodbridge notes to 13 investors and consented to a settlement without 
admitting or denying the allegations.  
   Stephen Condon Peters was sentenced to 40 years in prison and ordered to repay investors $15 million for a note Ponzi scheme through VisionQuest Wealth Management.  
    Shayeh Dov was sentenced to over 7 years in prison and ordered to pay $3 million in restitution to investors in his note fund that did not own any notes.  Dov spent the money on lavish indulgences. 
    Terry Wayne Kelly Jr. and Kelly Management were charged by the SEC in connection with selling notes in a Ponzi scheme fund called Madison Timber Properties. 
      Vincent P. Falci was sentenced to 15 years in prison for running a $10 million tax lien fund Ponzi scheme. Falci defrauded victims through Saber Funds and Vicor Tax Receivables, providing fake investment gains on every monthly statement. Falci diverted the funds to himself. 
    Kevin Merrill of Delmarva Capital and his partners Jay Ledford and Cameron Jezierski pleaded guilty to running a $550 million Ponzi, enticing investors to buy into a fund of consumer debt portfolios.  But there were no portfolios.  Merrill used investors' money to buy 25 super-luxury cars and 6 homes, among many other things.  They face decades in prison. 
    James Nickels collected more than $5 million from investors in his phony note fund The Fiscal Concierge
    McKinley Mortgage note fund officials Tobias, Charles and Caleb Preston agreed to pay over $3 million in fines and repay investors some $30 million after the SEC charged them with misusing funds.  The SEC asserts that the company lost money for years and was insolvent by 2012. Still, the SEC says, the fund kept raising money and providing false documents to investors claiming the 
fund generated strong annual returns. 
    Phillip Michael Carter was accused by the SEC of running a note fund Ponzi that raised $45 million. The alleged scheme was run with Bobby Eugene Guess and Richard Tilford and defrauded 270 investors. Carter and Tilford were indicted last year, and Guess is currently serving a 12-year prison sentence after pleading guilty to a similar note fund fraud. 
    There are many more.  These are just some of the most recent ones.  This is why we do not permit note funds to advertise with us or to exhibit at our events. Doubtlessly there are some honest funds, but I’m not a fortune teller, and I doubt you are, either.  ALWAYS take title to your notes. 

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Senior Member
Posts: 1,062
Reply with quote  #2 
Thank you for posting.  This is the scary thing about "paper" investments, or worse, online investments.  You could log on to cash out one day and all you get is "user or password unknown" or worse "404, website unknown".  Money is just a number in an accounting system.  As you showed above, accounts can be fraudulent.  I can hear Stacy Keach reading this in my head...

Senior Member
Posts: 2,086
Reply with quote  #3 
Originally Posted by rickencin
This is the scary thing about "paper" investments, or worse, online investments.  You could log on to cash out one day and all you get is "user or password unknown" or worse "404, website unknown". 

Excellent point! I have bought many houses at trustee sales without ever entering the property, and during the process I've experienced very little, if any, anxiety or worry. However, on every note or fund investment I've made, it takes much longer for me to pull the trigger. And I'm never as comfortable as seeing feel-and-touch assets. My paper investments are a fraction of land-and-house investments. Paper is always a little unsettling.

Most ponzi-scum scams involve paper. Since moving to North Carolina, I've only done one flip in four years. My investments have all been paper, and I take a very, very conservative approach to it.
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