ponzi schemer

Ponzi Schemer's Luxury Cars Go Up For Auction

Filed under: Luxury Cars & Autos, Crimes and Misdemeanors

As our sibling site Autoblog mentioned earlier, the luxury cars of Ponzi schemer Byron Keith Brown are headed to auction in Maryland. Brown was convicted and given 15 years in prison for a scam that cost people a total of $17 million. The Baltimore Sun reported that the cars are being sold on March 1 as part of an auction run for the U.S. Treasury Department. Proceeds will be added to the U.S. Treasury's Asset Forfeiture Fund and net proceeds derived from the assets will be available as restitution for the victims of Brown's crimes.

Brown ran a company called "In God We Trust Financial Services" and several others under different names in Virginia and Maryland pushing an investment scheme that gave the appearance that people were sending him up to $1 million. Brown spent his money of a variety of flashy cars including a 2007 Lamborghini Murcielago, a 2005 Rolls Royce Phantom, a 2004 Mercedes Benz Maybach 57, a 2006 Aston Martin and many more. A total of 17 cars are being sold, the complete list is at Mahheim Auctions. The auction takes place at the Manheim Baltimore-Washington location, 7120 Dorsey Run Road, Elkridge, MD, 21075.

Make sure you don't get caught in a Ponzi scheme, check out the tips below on how to avoid shady investments.

Tags: byron keith brown, ponzi scheme, ponzi schemer, treasury auction

More Madoff Items Up For Auction

by Deidre Woollard (RSS feed) —

Filed under: Auctions, Crimes and Misdemeanors

Just when I think we are done with Bernie Madoff's ill-gotten gains, more items are up for auction through the United States Marshals Service Southern District of New York. More than 400 pieces of personal property, jewelry, and antiques from the Ponzi schemer and his wife, Ruth, will be sold during a live and online auction in at the Sheraton New York Hotel & Towers in New York City on November 13, 2010.

"A diamond ring, grand piano, and personalized items are just a few of the lots that will be put up on the auction block", said Joseph R. Guccione, U.S. Marshal for the Southern District of New York. "These pieces are the last of what once occupied the homes and lives of Bernard and Ruth Madoff‟s residences in New York City and Montauk, N.Y." The ring, shown above is a 10.54 carat diamond set in platinum with a GIA certificate stating that it is VS2 in clarity and F in color. Other items include a Steinway & Sons grand piano and a pair of monogrammed velvet slippers.

Proceeds from the auction will be deposited in the United States Department of Justice Asset Forfeiture Fund to compensate the victims of this multi-billion dollar fraud. Even though the government has sold three homes, yachts and other Madoff belongings the total proceeds of approximately $25 million haven't come close to chipping away at amount Madoff swindled from his investors.

Tags: bernard madoff, bernie madoff, Bernie Madoff Ponzi Scheme, Ponzi Scheme, ponzi schemer, ponzi schemes, us marshalls

Bernie Madoff's Palm Beach Home Finally Under Contract

by Deidre Woollard (RSS feed) —

Filed under: Estates, Crimes and Misdemeanors

it took a while but Bernie Madoff's three homes have all finally found buyers. Last to go was Madoff's Palm Beach, Florida home which is now under contract.

In February of this year, the Ponzi schemer's New York City penthouse was sold to Al Kahn, the CEO of 4Kids Entertainment. That home had been most recently listed at $8.9 million, $1 million off the original price. Madoff's Montauk house sold for $9.41 million around a year ago, more than the $8.75 million for which it was listed.

Madoff's Palm Beach home was built in 1973 and has five bedrooms and seven bathrooms. The property has a private dock on the shore of Lake Worth. The Corcoran listing says that the home was purchased and renovated by developer Michael Burrows in the early 90s and features many of his signature classic features. The upstairs master suite has 17' ceilings, separate dressing rooms and bathrooms with a balcony running the width of the house overlooking the great Banyan tree. Outside there is a pool facing the intracoastal. This home was first listed in 2009 for $8.49 million but the price was most recently $6.5 million. It was bought in 1994 for $3.8 million under the name of Madoff's wife, Ruth. The sale price has not been disclosed.

As with Madoff's other homes and his yachts, sale proceeds will go toward the victims of his Ponzi scheme. He is currently serving a 150-year sentence at a federal prison in North Carolina.

Gallery: Bernie Madoff in Palm Beach

Tags: bernard madoff, bernie madoff, Bernie Madoff Ponzi Scheme, ponzi scheme, ponzi schemer

Cuban Jeweler is The Latest Florida Ponzi Schemer

by Deidre Woollard (RSS feed) —

Filed under: Jewelry

Another Florida Ponzi schemer has made the news. Cuban jeweler Luis Felipe Perez has been accused by the U.S. Securities and Exchange Commission of bilking at least $40 million from investors since 2006. Perez, known as Felipito in the local community, owned Lucky Star Diamonds and Luis Felipe Jewelry Designs Corporation, two businesses that have now closed. According to the S.E.C. he used investor money not to build his jewelry businesses but to spend lavishly. He bought a $3.2 million house, rented luxury cars and spent hundreds of thousands of dollars on vacations, fancy dinners and clothing for his wife. The S.E.C. alleges that he misused more than $6 million of investor money primarily raised from investors in the local Hispanic community to purportedly support jewelry businesses and pawn shops.

The complaint says he arranged "no-risk" loan agreements with investors, promising annual returns of 18 percent to 120 percent through monthly interest payments. He also told investors that their money is backed by diamonds, and even more shockingly he led some investors to believe they were beneficiaries on his life insurance policy without disclosing that the policy had lapsed. The U.S. Attorney's Office for the Southern District of Florida has also filed criminal charges against Perez.

Tags: diamonds, Lucky Star Diamonds Inc., Luis Felipe Jewelry Design Corp., Ponzi Scheme, ponzi schemer, ponzi schemes

Ponzi Schemer's Loot Brings In $5.8 Million

by Deidre Woollard (RSS feed) —

Those affected by Florida Ponzi schemer Scott Rothstein's machinations got a little justice this week in the form of a total of $5.8 million brought in by an auction of Rothstein's toys at the Broward County Convention Center. The Sun-Sentinel reports there was such a big turnout for the affair that the auction started almost two hours late. Up for sale were Rothstein's luxury cars including a Bugatti, a Lamborghini Murcielago, a '67 Corvette Stingray, a Bentley, a Rolls Royce, a Mercedes McLaren, a Maserati and a pair of Ferraris.

There were a total of 17 lots and in little over an hour 11 cars, four yachts and two Wave Runners were snapped up by new owners. Rothstein's 87-foot Warren yacht, the Princess Kimberly, went for $2.51 million. The Bugatti, which Rothstein paid $1.5 million for was sold for $858,000. The $5.8 million will be added to the restitution fund for victims of Rothstein's $1.4 billion investment fraud scheme.

Tags: floyd mayweather, Ponzi Scheme, ponzi schemer, ponzi schemes, scott rothstein

University Returns Ponzi Schemer's Donations

by Deidre Woollard (RSS feed) —

Filed under: Crimes and Misdemeanors

Just about every university can use any dollars it can get into its coffers right about now but Miami University of Ohio has officially returned money donated by Minnesota businessman and Ponzi schemer Tom Petters. The university said it wired $5 million that Petters had donated to a receiver appointed by the federal court in Minnesota.

Originally Petters had pledged $10 million to the Farmer School of Business but only donated about half of that plus another $200,000 toward a $4 million pledge for a chair in Asian studies. The $10 million was going to create the John T. Petters Center for Leadership, Ethics and Skills Development named after Petters' son who died on a vacation. Petters was convicted of fraud in what prosecutors called a $3.5 billion Ponzi scheme and sentenced to 50 years in prison.

Tags: miami university of ohio, Ponzi Scheme, ponzi schemer, ponzi schemes, tom petters

Florida Fraudster Scott Rothstein's Toys Up For Auction

by Deidre Woollard (RSS feed) —

Filed under: Luxury Cars & Autos, Auctions, Crimes and Misdemeanors

My colleague Carrie Coolidge has covered the sordid tale of Florida fraudster Scott Rothstein in depth. Rothstein's ill-gotten gains are headed to auction on June 3 at the Broward County Convention Center in Fort Lauderdale, Florida. VSE Corporation and Rick Levin & Associates, Inc. will conduct the auction of seized and forfeited luxury vehicles and vessels formerly owned by Scott Rothstein and others on behalf of the U.S. Department of the Treasury. Most of these luxury vehicles and vessels for auction were property acquired by Rothstein through his involvement in a Ponzi scheme. This property was seized from him as part of the investigation and prosecution of the case against him. He entered a guilty plea in January 2010 and could face charges adding up to 100 years in prison at his upcoming sentencing.

The auction will include some very exotic vehicles for both land and sea including a 2008 Bugatti Veyron, 2009 Bentley Continental GTC, 2007 Rolls - Royce Phantom, 2010 Lamborghini LP-670SV, 2007 87' Warren Yacht, 1998 55' SeaRay Sundancer and many more. Proceeds from the auction will be placed in the U.S. Treasury's AssetForfeiture Fund and net proceeds from the Rothstein assets will be available as restitution to the victims of his crimes. Check out videos of some of the toys for sale including the Veyron and the Warren yacht at the Rick Levin & Associates website.

Tags: bugatti veyron, ponzi schemer, ponzi schemes, scott rothstein, warren yachts

Another Alleged Ponzi Schemer's Yacht For Sale

by Deidre Woollard (RSS feed) —

Filed under: Yachts & Sailing

Those alleged financial malefactors have fine taste in yachts. Check out Obsidian, a 98-foot Azimut motor yacht that Indianapolis financier Tim Durham once boasted he spent $5,000 a month just to dock in Miami. Whether or not the yacht still belongs to Republican financier with the fancy tastes is not clear. One thing that is certain is that it is for sale through Moran Yachts for 3.4 million euros. The listing says the ship is docked in Turkey. The yacht has three guest cabins including a master stateroom with a king size bed and walk-in dressing room. The flybridge has a large round jacuzzi tub and the yacht has two jet skis. Obsidian is the name of Durham's holding company.

Back in 2008 Durham's lavish life was profiled on CNBC but Durham has been unloading his holdings left and right over the past few months and in November the FBI raided his Indianapolis office. Federal authorities are trying to determine if Durham's Fair Finance Company operated as a Ponzi scheme. The Indianapolis Business Journal reports that Durham and his business partners used Fair Finance as a bank, taking out over $168 million in insider loans. Investors are worried that some $200 million given to Fair to purchase investment certificates may be gone forever.

Tags: obsidian yacht, ObsidianYacht, Ponzi Scheme, ponzi schemer, ponzi schemes, PonziScheme, PonziSchemer, PonziSchemes, tim durham, TimDurham

Versace's Former Mansion Caught Up In Ponzi Schemer's Downfall

by Deidre Woollard (RSS feed) —

Filed under: Crimes and Misdemeanors

Earlier I wrote about the Scott Rothstein Ponzi scheme in Florida but now another news story indicates that the fallout extends beyond just Rothstein's own properties. Casa Casuarina, Gianni Versace's South Beach mansion, is also caught in the crossfire. Rothstein, who is part owner of the property, has been accused of swindling investors in a Ponzi scheme which took in hundreds of millions of dollars.

Just a few weeks ago executive chef Wolfgang Birk moved from Washington D.C. to South Beach to take over the new Italian restaurant at Casa Casuarina but on Monday he was escorted out of the building by police along with the mansion's other employees. The restaurant was supposed to open this week. The employees are out of work and their payrolls will be hung up in court while Rothstein's complicated legal tangles are sorted out. Rothstein's Bova Group had taken over management of the entire property, including the hotel, restaurant, nightclub, and the private membership club. After Rothstein's illegal dealings were discovered Peter Loftin, Casa Casuarina's majority owner, asked that anything associated with Bova Group be taken out of the property in order to protect his property from anyone coming after Rothstein. An article on the Daily Pulp says that Loftin is looking into bringing in a new management company in order to reopen the property.

Rothstein had $1 million wedding at the property last year with Florida governor Charlie Crist in attendance. He has bought a small stake in the mansion and has left behind hundreds of thousands of dollars in unpaid bills relating to renovations for the restaurant and other areas.

Tony Bova, Rothstein's partner in the restaurant business also managed Bova Prime in Fort Lauderdale and was not part of the Ponzi schemer's machinations. The future of that restaurant is also uncertain and it could end up closing.

Source

Tags: casa casuarina, CasaCasuarina, ponzi scheme, ponzi schemer, ponzi schemes, PonziScheme, PonziSchemer, PonziSchemes, scott rothstein, ScottRothstein

Another Florida Ponzi Schemer Loses His Toys

by Deidre Woollard (RSS feed) —

Filed under: Crimes and Misdemeanors

Is Florida the home of the Ponzi scheme. NBC Miami brings in the story of yet another Florida Ponzi schemer who has had his toys seized by federal agents. Fort Lauderdale lawyer Scott Rothstein has not been arrested yet but the IRS has filed documents saying that he has been running a scheme since 2005, swindling hundreds of millions of dollars from investors. The filing says that Rothstein and others created false bank records and created legal settlements that did not exist. According to the Sun-Sentinel, the documents show that Rothstein's clients believed they were buying blocks of structured settlements derived from sexual harassment and labor-related cases in which confidential agreements had been reached. As with other Ponzi schemes new investor money was used to pay previous investors.

Federal agents visited Rothstein's $6.5 million mansion and hauled away his sports car collection and yacht and placed liens on several of his properties. The video from NBC Miami shows flatbed trucks taking away hisRolls-Royce Phantom and Bentley convertible. A red Ferrari was taken from his office and his 80-foot yacht Kimberly, named for his wife was sailed off to a collection agency. So far at least one lawsuit has been filed by investors seeking to get back some of the money they have lost.

Source

Tags: fort lauderdale, FortLauderdale, nbc miami, NbcMiami, ponzi scheme, ponzi schemer, ponzi schemes, PonziScheme, PonziSchemer, PonziSchemes, scott rothstein, ScottRothstein

South Florida's Latest Ponzi Schemer May Be The Most Brazen Yet

by Deidre Woollard (RSS feed) —

Filed under: Crimes and Misdemeanors

NBC Miami tells the story of another alleged Ponzi schemer. Sean Healy is no Bernie Madoff but he may have walked off with $20 million from his clients most of which seems to have been spent on living an exceedingly lavish lifestyle. Healy and his wife, a former Hooters girl, lived in an extravagant $2.4 million mansion in Weston, Florida. A Ferrari, stretch limousine and several Lamborghinis (a pink-trimmed one for the wife) were parked in the garage and the pair also spent millions on jewelry and tricking out the home (once owned by former NFL quarterback Bernie Kosar, a man with his own financial woes) with a $500,000 home theater. According to a video shot by NBC Miami (embedded after the jump), Healy invested none of his clients money and spent it all on his belongings, inventing big returns out of pure thin air. He is currently under house arrest in New York.

Source

Tags: florida, investment fraud, InvestmentFraud, ponzi schemer, PonziSchemer, sean healy, SeanHealy, weston

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