LexisNexis® Legal Newsroom
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...

Alleged Schemer Wins Request For Victim Tax Returns; Government Objects

Both federal prosecutors and a defrauded victim are fighting a court order requiring the government to provide a Las Vegas man on trial for allegedly masterminding a $190 million Ponzi scheme with copies of the last ten years of tax returns for the scheme's wealthiest victims. Ramon Desage, 64, was...

Bar Owner Liable For Promoting $18 Million Ponzi Scheme

A Texas federal judge has ruled that a California bar owner who solicited investors for a suspected $18 million oil and gas Ponzi scheme is liable for nearly $400,000 in civil penalties, interest, and disgorgement stemming from the lucrative commissions he received. Roland Barrera, the owner of a nightclub...

Three Charged With $54 Million "Green Energy" Ponzi Scheme

Nearly six years after the Securities and Exchange Commission brought civil fraud charges, federal authorities filed criminal charges against three people for operating a $54 million Ponzi scheme touting "green energy" and "carbon-negative" technologies. Troy Wragg, 34, of Georgia...

Hollywood Filmmaker Charged With $21 Million Ponzi Scheme

A California man and woman were arrested by authorities on charges that they masterminded a $21 million Ponzi scheme that pitched large returns in exchange for financing movie productions. Michelle Kenen Seward, 42, and Dror Soref, 75, were arrested by authorities with the California Department of Insurance...

North Carolina Bank Sued by Victims of $40 Million “Black Diamond” Ponzi Scheme

Four years after settling allegations by the U.S. Department of Justice that it turned “a blind eye to criminal conduct occurring under its nose,” a North Carolina bank is facing a lawsuit from victims of a $40 million Ponzi scheme who claim that the bank allowed the scheme to thrive. CommunityOne...

Texas Man Admits to $4.5 Million Bitcoin Ponzi Scheme

In what is widely believed to be the first Ponzi scheme involving virtual cryptocurrency Bitcoin, a Texas man pleaded guilty to one count of securities fraud in a scheme that raised nearly $5 million in Bitcoin from investors who were promised astronomical annual returns of over 3,500%. Trendon Shavers...

Victims of $200 Million Ponzi Scheme Set to Recover 9% of Losses

Nearly six years after a raid by the Federal Bureau of Investigation uncovered a $200 million Ponzi scheme masterminded by Tim Durham, a bankruptcy trustee tasked with recovering funds for scheme victims has announced his intention to make a first distribution representing 8% - 9% of victim losses. Victims...

Banker Tied to Rothstein's Massive Ponzi Scheme Will Plead Guilty

Just before his trial was scheduled to begin next month, a former TD Bank vice president will plead guilty to a wire fraud conspiracy charge related to his relationship with convicted Ponzi schemer Scott Rothstein. Frank Spinosa, 54, is scheduled to plead guilty to a single count of wire fraud conspiracy...

Self-Described "Idiot" Charged With $1.5 Million Ponzi Scheme

A New Jersey man was charged with multiple violations of federal securities laws for operating what authorities allege was a Ponzi scheme that duped investors out of over $1.1 million. William Wells, along with his company, Promitor Capital Management, LLC ("Promitor"), was named in a complaint...

Lawyers Seek Approval to Distribute Clawback Recoveries to Ponzi Victims

Victims of one of the largest Ponzi schemes uncovered in Ohio could soon receive a partial return of their losses based on efforts by attorneys to "claw back" fictitious profits paid to some investors. Attorneys representing victims of Glen Galemmo's $35 million Ponzi scheme are set to...

Supreme Court Rejects Time-Based Damages for Madoff Victims

The U.S. Supreme Court refused to hear an appeal over whether victims of Bernard Madoff's historic Ponzi scheme were entitled to an inflation-based upward adjustment of their losses, freeing approximately $1 billion for future distributions to victims and bringing finality to an appellate court's...

Bank Hit With $72 Million Judgment for Role in $100 Million Ponzi Scheme

An Ohio-based bank was tagged with a $72 million judgment - ballooning to nearly $83 million with accrued interest - for its role in providing banking services to a notorious Ponzi schemer who committed suicide as authorities closed in. Huntington Bank, a publicly-traded company with hundreds of branches...

After Mistrial, Feds Will Retry Cay Clubs Founder In November

Authorities are hoping that Fred Davis Clark's good luck streak has finally run out. The founder of Cay Clubs, which has been accused by civil and criminal authorities of operating a massive $300 million Ponzi scheme that duped scores of investors with promises of lucrative returns through timeshare...

Madoff Victims Who Lost $1.1 Million or Less Will Soon Be Fully Repaid

The court-appointed bankruptcy trustee for Bernard Madoff's massive Ponzi scheme is seeking to make a sixth distribution to Madoff's defrauded victims that, if approved, would fully repay victims with losses of $1.1 million or less. Trustee Irving Picard has scheduled a hearing for November 18...

After Failed Suicide Attempt, Ex-Biglaw Lawyer To Plead Guilty To $5 Million Ponzi Scheme

A former Biglaw lawyer who was charged with operating a $5 million Ponzi scheme after surviving a Ponzi scheme will reportedly plead guilty to fraud charges. Charles Bennett, a former lawyer at renowned law firm Skadden Arps Slate Meagher & Flom LLP, was arraigned from his hospital bed late last...

Rothstein "Independent Asset Verifier" Gets 30-Month Sentence

A south Florida investment advisor who once served as a financial advisor to convicted Ponzi schemer Scott Rothstein has been sentenced to a 30-month term for his role in the scheme. Michael Szafranski, 37, received the sentence from U.S. District Judge Dimitrouleas after previously pleading guilty to...

Florida Woman Gets 9-Year Sentence for $25 Million Ponzi Scheme

A Florida woman whose company promised weekly returns of up to 50% will spend the next nine years in prison after pleading guilty to running an elaborate Ponzi scheme. Jenifer Hoffman, 51, pleaded guilty earlier this year to charges of conspiracy to commit wire fraud and filing a false tax return. She...

Ohio Couple Charged With $70 Million Ponzi Scheme

An Ohio husband and wife face criminal and civil actions on charges that they operated a massive Ponzi and pyramid scheme that is believed to have taken in at least $70 million from nearly 500 victims. An indictment returned by an Ohio federal grand jury charges William M. Apostelos and his wife Connie...

Trial Begins Friday for 20-Year Old Nightclub Owner Accused of $500,000 Ponzi Scheme

Trial begins Friday for a Connecticut teenager accused of operating a Ponzi scheme that duped friends and family - including his parents - out of $500,000. Ian Bick, now 20, is facing eleven counts of wire fraud, three counts of money laundering, and one count of making a false statement to law enforcement...

Criminal Charges Filed Against Co-Founder of "Triple Algorithm" Ponzi Scheme

North Carolina prosecutors have filed criminal charges against a Michigan man accused of masterminding a massive Ponzi scheme that duped over 10,000 victims out of at least $7 million by telling them he could deliver outlandish returns exceeding 700%. Troy Barnes, 53, was charged with one count of wire...

Jury Holds Ernst & Young Liable for Madoff Losses

A Washington jury has found accounting firm Ernst & Young ("E&Y") liable for at least $10 million of losses suffered by a Washington investment company that invested in Bernard Madoff's infamous Ponzi scheme through a "feeder fund" audited by the firm. FutureSelect Portfolio...

Jury Holds Ernst & Young Liable for Madoff Losses

A Washington jury has found accounting firm Ernst & Young ("E&Y") liable for at least $10 million of losses suffered by a Washington investment company that invested in Bernard Madoff's infamous Ponzi scheme through a "feeder fund" audited by the firm. FutureSelect Portfolio...