Posts belonging to Category Ponzi Schemes

DOJ’s New Strategy for Dealing with White Collar Fraud


Is the federal government really getting tougher on white-collar crime? Faced with criticism for not holding big banks and their senior executives accountable for their behavior leading up to the financial crisis, the U.S. Department of Justice (“DOJ”), which prosecutes federal crime cases, is developing a new model for dealing with alleged financial crimes perpetrated […]

The Northern District of Georgia Sends a Strong Message to Ponzi Scheme Operators


Andrew Mackey, a recently convicted ponzi scheme operator who defrauded 160 metro-Atlantans through his company, ASM Financial Funding Corp., was sentenced to 27 years in federal prison by U.S. District Court Judge William Duffey. His common law wife, Inger Jensen, had already been sentenced to 14 years for her role in the fraud (“Man gets […]

SEC Charges Former Atlanta Attorney with Investment Fraud


The Securities and Exchange Commission charged James S. Quay, age 50, a disbarred Atlanta attorney and unlicensed financial advisor, with defrauding two elderly women he convinced to invest with him directly. Mr. Quay is a convicted felon and had a history of steering retirees into fraudulent investment schemes, which he concealed from his victims, according […]

SEC Sues Another Atlanta Investment Adviser for Fraud


The SEC has filed a civil action against Atlanta-based Summit Wealth Management Inc. and its president Angelo A. Alleca charging them with fraud resulting in the loss of over $17 million of investors’ money. The suit seeks an order freezing the defendants’ assets, an order appointing a receiver and an order requiring an accounting of […]

State Regulators are Filing More Claims Against Investment Advisers


Investment advisers and their firms are facing increased scrutiny from state regulators following enactment of the Dodd-Frank financial reform act and the high profile press coverage of the Madoff ponzi scheme and other fraudulent activities. The number of regulatory enforcement actions against investment advisers increased by 100 percent in 2011. Regulators are on the lookout […]

Elder Financial Abuse Continues to Ravage Seniors


Financial exploitation of older Americans is a big problem and it is getting bigger. An article by Wall Street Journal columnist Kelly Greene points out that senior citizens are “very vulnerable” to fraud and refers to a recent study by the Investor Protection Trust. The study polled hundreds of regulators, financial planners, healthcare professionals, social […]

New Scams Threaten Investor Nest Eggs


New types of scams are posing threats to investor well-being. The North American Securities Administrators Association (NASAA), a group of state securities regulators) has identified four new types of fraud to go along with the 6 persistent fraud threats that round out their Top Ten Threats to Investors.

Old Age Is Golden For Scam Artists


The number of financial scams targeting seniors is dramatically increasing according to a survey conducted by the non-profit Investor Protection Trust. “Swindles targeting older Americans are a bigger problem today than ever before,” Don Blandin, president and chief executive of Investor Protection Trust, was quoted as saying (See “Survey reveals alarming rise in financial abuse […]

Elder Financial Abuse Reaching Crisis Levels


Elder financial abuse is an “epidemic” and likely to become much worse given that 77 million baby boomers are entering their so-called “retirement” years (See “Golden years? Financial elder-abuse now epidemic,” Andrew Osterland, InvestmentNews). Between 500,000 and 5 million elders are abused, neglected or exploited each year, and the abuse is often unreported. “Elders can […]

How to Avoid a Financial Product Scam


U.S. News & World Report has posted an article to help investors deal with the constant bombardment of unsolicited sales pitches and investment advice, which could be great, but is more likely substandard, and may be deadly. The article by David Ning, “7 Ways to Avoid Financial Product Scams,” purports to present “seven ways to […]