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"Brooklyn Madoff" Ponzi Victims Sue Banks for $36 Million

Several dozen victims of a massive Ponzi scheme masterminded by a Brooklyn man dubbed the "Bernie Madoff of Bay Ridge" have filed a lawsuit seeking over $36 million from several financial institutions that allegedly aided the decades-long Ponzi scheme. Over two dozen victims of Philip Barry...

TelexFree Trustee Provides Update On Claims, Losses, And Clawbacks

The bankruptcy trustee tasked with recovering funds to compensate hundreds of thousands investors worldwide who were duped in the massive TelexFree fraud appeared at a Bankruptcy court hearing today where he provided an update on the complexity of the scheme, the estimated losses, and the next steps...

Texas Man Charged With $4.5 Million Oil-and-Gas Ponzi Scheme

A Texas man is facing criminal charges on allegations that he ran a $4.5 million Ponzi scheme through the sale of purported interests in oil and gas wells. William Allen Risinger was charged with three counts of wire fraud and one count of money laundering in an indictment that was filed in May 2015...

Key Player In $150 Million Ponzi Scheme Gets 1-Day Sentence

A California man accused of being a key player in a $150 million Ponzi scheme - allegedly the largest scheme ever uncovered in Orange County, California – will spend one day in jail for his role despite once facing over thirty felony charges. Adam Jay Boskovich, 45, received the sentence after...

Supreme Court Deals $4 Billion Blow to Madoff Recovery Efforts

The Supreme Court refused to consider an appeal brought by the court-appointed bankruptcy responsible for recovering assets for Bernard Madoff's massive Ponzi scheme, instead leaving intact an appellate decision that prevents the recovery of "false profits" by Madoff profiteers beyond the...

Colorado Woman Charged With $7 Million "Triple Algorithm" Ponzi Scheme

North Carolina authorities have filed criminal charges against a Colorado woman on allegations that she operated a massive Ponzi scheme that duped over 10,000 victims out of at least $7 million under the guise that a "lifetime income plan" could deliver annual gains exceeding 700%. Kristine...

SEC Busts Gold-Mining Ponzi/Pyramid Scheme Targeting Spanish-Speaking Victims

The Securities and Exchange Commission filed civil fraud charges against a Massachusetts company and its principals and promoters, arguing the company was a massive Ponzi and Pyramid scheme that raised at least $15 million from primarily Spanish and Portuguese-speaking victims. DFRF Enterprises LLC,...

Hedge Fund Manager Gets Six Year Sentence For $11 Million Ponzi Scheme

A Chicago investment fund manager who touted his law degree to potential victims in an attempt to win their trust will serve the next seventy-two months in federal prison for masterminding a Ponzi scheme that raised more than $11 million from primarily Hindu victims. Neal Goyal, 34, received the sentence...

SEC Alleges California Woman Ran $68 Million Oil-and-Gas Ponzi Scheme

A California woman was charged with masterminding a $68 million Ponzi scheme that touted lucrative oil-and-gas interests to primarily Chinese-Americans both in the United States and abroad. The Securities and Exchange Commission filed an enforcement action accusing Bingqing Yang, her management companies...

Criminal Charges Filed in Alleged $1.5 Billion Medical Factoring Ponzi Scheme

Authorities have filed criminal charges against the president and two former executives of a Las Vegas investment company, alleging the company operated a massive $1.5 billion Ponzi scheme. Nearly two years after the Securities and Exchange Commission filed civil fraud charges, the U.S. Department of...

New York Lawmaker's Son-in-Law Pleads Guilty to $6 Million Ponzi Scheme

The son-in-law of Sheldon Silver, a prominent New York state lawmaker, has pleaded guilty to operating a Ponzi scheme that duped victims out of approximately $6 million. Marcello Trebitsch, also known as Yair Trebitsch, entered a guilty plea to a single count of securities fraud today in a New York federal...

Former Stockbroker Charged With $15.5 Million Ponzi Scheme

A Pennsylvania former stockbroker was hit with civil fraud charges by the Securities and Exchange Commission and accused of operating a Ponzi scheme that sold fake certificates of deposit ("CDs") and raised more than $15 million from victims. Malcolm Segal, 69, was charged with multiple violations...

Two Canadian Banks Pay $36 Million to End Ponzi Lawsuits

Two prominent Canadian banks agreed to pay $36 million to settle independent lawsuits alleging the banks aided massive Ponzi schemes that bilked victims out of a total of nearly $4 billion. TD Bank, part of Canada's Toronto-Dominion Bank, and BMO Harris, also known as Bank of Montreal, disclosed...

July 2015 Ponzi Scheme Roundup

Below is a summary of the activity reported for July 2015. The reported stories reflect: 10 guilty pleas or convictions in pending cases; over 166 years of newly imposed sentences for people involved in Ponzi schemes; at least 11 new Ponzi schemes involving over $112 million; and an average age of approximately...

Texas Man Charged With $114 Million Ponzi Scheme

"The return on this investment is so tremendous, it is worth that amount many, many times over...and it is certainly worth paying a very generous interest rate in order to secure the funds." - Investor offer letter The Securities and Exchange Commission has filed civil fraud charges against...

Final Madoff Defendant Sentenced to Prison

Nearly 8 years after Bernard Madoff confessed to an FBI agent in his Manhattan apartment that he was running a giant Ponzi scheme, a New York federal judge sentenced the 15th and last remaining defendant to be charged for their role in Madoff's scheme to six months in prison. Irwin Lipkin, the first...

Schemer's Unauthorized Real Estate Investment May Pay Off For Victims

Victims of one of the largest Ponzi schemes uncovered in Long Island may soon recoup a significant chunk of their losses from the sale of a luxury Montauk resort that the scheme perpetrator purchased using misappropriated investor funds. Brian Callahan and Adam Manson, who each currently await sentencing...

Ponzi Schemer Gets Extra Two Years For Violating Asset Freeze

It is to say to other people who are brought in to court by the SEC, 'This is what could happen to you if you violate the interim orders that judges frequently impose in cases brought by the SEC or similar agencies. It is not going to be folded up into a ball of wax and everything is going to be...

Trial of Accused $300 Million Ponzi Scheme Masterminds Ends in Acquittal, Mistrial

In a rare loss for the government in a Ponzi scheme trial, the trial of a husband-and-wife duo accused of defrauding thousands of investors out of hundreds of millions of dollars in an alleged timeshare Ponzi scheme ended with a full acquittal for the wife and a mistrial declared for her husband. After...

Massachusetts TelexFree Victims Share $3.5 Million Bank Settlement

Nearly $3 million was distributed this week to over 14,000 victims of the massive alleged TelexFree Ponzi/pyramid scheme as a result of a Massachusetts securities regulator's settlement with a Massachusetts bank that provided banking services in the alleged fraud. The settlement, distributed by way...

California School Pays $480,000 to Remove Schemer's Name From Scoreboard

A California university will pay nearly half a million dollars to remove the name of a man convicted of running a $22 million Ponzi scheme from a 53-foot advertisement on a scoreboard in the school's athletic facility. California Polytechnic State University, San Luis Obispo ("Cal Poly"...

Utah Man And Cousin Indicted For Alleged $140 Million Ponzi Scheme

A Utah man and his cousin have been indicted on forty-eight charges that they operated a massive real estate Ponzi scheme estimated to have raised at least $140 million from hundreds of investors. Wayne Palmer ("Palmer"), 60, was charged with 14 counts of wire fraud, 17 counts of mail fraud...