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Ponzi Scheme

BUSINESS
September 18, 1997 | P.J. Huffstutter
Federal regulators accused MicroWest Industries Inc. of fraud, saying the Irvine-based company raised more than $4.25 million from unsuspecting investors through promises of high returns in a tele-medicine project. The Securities and Exchange Commission, in a lawsuit filed in federal court in Los Angeles, said MicroWest had promised investors their money would be used to make and market computer equipment to transmit medical images, among other things.
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BUSINESS
April 3, 2002 | Bloomberg News
Two California men who raised $152 million in a Ponzi scheme and then became victims themselves in an unrelated banknote scam face prison after pleading guilty to criminal charges, federal prosecutors said. Ernest F. Cossey faces 57 to 71 months in prison after pleading guilty to one count of conspiracy to commit mail fraud and one count of filing a false tax return, said the office of the U.S. attorney for the Southern District of California in San Diego.
BUSINESS
September 7, 2002 | Bloomberg News
Two California men were arrested by federal agents in connection with a $25-million Ponzi scheme that the men claimed was licensed by the International Monetary Fund and the U.S. Treasury, prosecutors said. John C. Jeffers, 61, of Mentone and John Minderhout, 54, of Yucaipa lured investors with an investment program that they said used funds to finance humanitarian projects around the world, said the U.S. attorney's office in Los Angeles.
BUSINESS
January 15, 2003 | From Bloomberg News
UnionBanCal Corp. must face claims by six investors in Reed Slatkin's Ponzi scheme who claim that California's third-largest bank conspired to conceal the EarthLink Inc. co-founder's fraud. UnionBanCal will have to go to trial on three of four claims over Slatkin's scheme, including aiding and abetting a breach of fiduciary duty and conspiracy to commit fraud, U.S. District Judge Margaret Morrow ruled.
CALIFORNIA | LOCAL
January 21, 2009 | Scott Glover
Citing her "devastating impact on a community that can least afford it," a judge Tuesday sentenced an Altadena woman to more than 12 years in federal prison for orchestrating a $17.8-million Ponzi scheme that preyed largely on middle-class African American investors. Jeanetta M. Standefor, 40, pleaded guilty in September to operating a company that purportedly would earn investors money by salvaging properties that were on the brink of foreclosure.
CALIFORNIA | LOCAL
November 23, 1985
Hiipakka's characterization of Social Security as a Ponzi scheme is troublesome especially with the implication that our senior citizens are the villains. Perhaps a more accurate thought would be that presently we are all victims of taxation. It is difficult to develop total equity in any system or program. The move to an Individual Retirement Account for future retirement planning is a sound plan and does defer current taxes. However, the taxes deferred directly contribute to the budget deficits.
ENTERTAINMENT
October 28, 2013 | By Scott Collins
Now that Suzanne Somers has your attention with claims about all the sex she's having, the former "Three's Company" star-turned-longevity-expert has turned her attention to Obamacare. And she doesn't like what she sees. "Boomers are smart," Somers wrote in a Monday opinion piece for the online version of the Wall Street Journal. "They see the train wreck coming… most I speak with think the Affordable Care Act is a greater Ponzi scheme than that pulled off by Bernie Madoff.
BUSINESS
November 6, 1991 | JAMES F. PELTZ, TIMES STAFF WRITER
An investor in Property Mortgage Co. has filed a lawsuit against the bankrupt mortgage broker's executives, its banks and its accountants, alleging they conspired to help the Sherman Oaks concern operate a Ponzi scheme and sell unregistered securities that defrauded the company's several hundred investors.
BUSINESS
November 5, 1991 | JAMES F. PELTZ, TIMES STAFF WRITER
An investor in Property Mortgage Co. has filed a lawsuit against the bankrupt mortgage broker's executives, its banks and its accountants, alleging that they conspired to help the Sherman Oaks concern operate a Ponzi scheme and sell unregistered securities that defrauded the company's several hundred investors.
BUSINESS
September 21, 2011 | By Tiffany Hsu, Los Angeles Times
Internet gambling site Full Tilt Poker and its operators built a global Ponzi scheme that bilked online players out of at least $390 million, according to new allegations in an amended civil lawsuit filed by federal prosecutors. The U.S. attorney's office in Manhattan said that besides defrauding the U.S. banking system, as alleged in a civil lawsuit last spring, Full Tilt was "not a legitimate poker company. " Instead, it "cheated and abused its own players," prosecutors said, as insiders "lined their own pockets with funds picked from the pockets of their most loyal customers while blithely lying to both players and the public alike about the safety and security of the money deposited with the company.
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