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Tag Archives: ponzi scheme

On Trial for Fraud, Ponzi Scheme

On Trial for Fraud, Ponzi Scheme

Frail ex-Delray commissioner on trial for alleged Ponzi scheme says she never intended ‘not to pay back the money’ Former Delray Beach City Commissioner Charlotte Durante took the stand in her own defense Friday, vehemently denying prosecutors claims that she stole an estimated $1.8 million from people who came to her believing she would pay them big returns on their investment. “It was never my intention, never a thought in my mind, not to pay back the money,” she insisted. Further, she said, all of the 83 investors knew she was using their money to help her daughter establish the Museum of Lifestyle and Fashion history. When prosecutor Ryan Kelley pointed out that none of the 26 investors who testified during the three-day trial said they ever heard of the… […]

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Accused of Ponzi Scheme

Accused of Ponzi Scheme

Donald R. French Jr. a resident of Rome who lives in Boca Raton and attended Florida Atlantic University, is facing federal wire fraud charges. He was charged last week by information, an indication that he is now working with investigators (source). It was a “classic ponzi scheme,” an FBI agent wrote in a criminal complaint outlining French’s business. He was arrested this past September while on one of his Vegas trips, court documents show. French raised about $10 million from about 50 investors from Florida, Massachusetts and Michigan, and while he may have invested a little of the money, he spend most of it on himself, the complaint says. The 25-year-old has admitted to his scheme and told investigators that he knew what he was doing was illegal. With money… […]

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Ponzi Scheme in South Florida

Ponzi Scheme in South Florida

Ponzi schemes are investment fraud schemes that generally show up on the news. These fraudulent investments attract an abundance of media attention because they generally involve very wealthy people or people commonly known to the general public. In this case, Scott Rothstein and his uncle were co-conspirators in a $1 billion Ponzi scheme that is now coming to a close. What is a Ponzi Scheme? The definition of a Ponzi scheme according to the U.S. Securities and Exchange Commission is an investment fraud that involves the payment of falsified returns to existing investors from funds contributed by new investors. Ponzi schemers find investors by promising exceptionally high returns with little or no risk. They use money from new investors to pay the previous ones, without engaging in any legitimate investment… […]

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Ponzi Scheme in Fort Lauderdale

Ponzi Scheme in Fort Lauderdale

One of two Ponzi scheme suspects has been freed from jail on bond after he and his alleged accomplice were arrested on charges they defrauded more than a dozen investors out of more than $6 million, records show. Victor Brown, 54, of Hollywood, posted $150,000 bond for his release from Broward’s Main Jail on Thursday evening. On Friday morning, his business partner, Roger Green, 78, of Stuart, remained jailed on the same bond amount. Both men were taken into custody Wednesday on charges of racketeering and conspiracy to commit first-degree racketeering, authorities said. The Florida Department of Law Enforcement began investigating the men and their Fort Lauderdale company, Military Air Parts International, after people claiming to have been victimized stepped forward with complaints, a probable cause affidavit said. From 2004… […]

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How do Ponzi Schemes in South Florida Work?

How do Ponzi Schemes in South Florida Work?

A Ponzi scheme is a specific type of fraudulent investment. It is the act of using money received from investors to pay off other investors and personal expenses. Ponzi schemes are tactically organized to avoid using real profit for payments. Usually when a Ponzi scheme makes the news, it involves short-term returns that are abnormally high – making the perpetrator more noticeable. Ponzi schemes only work if there is an increasing flow of money from investors. Without an increasing amount, the plan will eventually collapse in on itself if the money flowing in is not enough for return payments to the investors involved. Ponzi Schemes in South Florida A South Florida real estate talk show host was arrested last week and accused of creating a Ponzi scheme. Anthony F. Cutaia… […]

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