Three Hedge Fund Managers Sentenced In Ponzi Scheme Case
Three hedge fund managers have been sentenced in a Ponzi scheme case that conned investors out of $40 million. Jeffrey Toft of Sioux Falls, South Dakota received 66 months in prison. Chad Sloat of Kansas City, Missouri received 70 months. And Michael Murphy of Deep Haven, Minnesota received 48 months. All three of their sentences […]
Indiana Man Receives 22 Year Sentence For North Carolina Ponzi Scheme
Thomas Kimmel, who federal prosecutors have accused of operating a Washington, North Carolina Ponzi scheme aimed at rural church goers, was sentenced in federal court this week to 264 months in prison. After serving that sentence he will serve three years of supervised release. Further, he has been ordered to pay over $16.5 million in […]
TD Bank Rehearing On $67M Ponzi Scheme Verdict Denied
Mutual Funds Knowledgeable Attorneys Explain Mutual Funds Strong counsel when brokers and investment firms act fraudulently or negligently Mutual funds can be a risky investment for many investors for several reasons. There are a range of types and classifications of funds that make it extremely hard for the investor to really understand which funds work […]
Mississippi Woman Accused Of Operating Gigantic Ponzi Scheme
Gina Palasini was arrested last month in Palm Springs, California as the list of people who claim they lost money by unknowingly participating in a Ponzi scheme operated by the Mississippi fugitive continues to grow. Palasini will be extradited to Mississippi on felony charges for bad checks and then sent to Wayne County for sentencing […]
Texas Judge Awards $40.7 In Bitcoin Ponzi Scheme Case
Last week, U.S. Magistrate Judge Amos Mazzant, a federal judge in Texas, ordered Bitcoin Savings and Trust and its owner, Trendon Shavers, to pay $40.7 million after the SEC proved that the company, which sold investments using bitcoins, was in reality a Ponzi scheme. According to Mazzant, Shavers “knowingly and intentionally” used the company “as […]
Alabama Supreme Court Affirms Class-Action Status In $3.2 Billion Lawsuit
Last week, the Alabama Supreme Court upheld a Jefferson County judge’s ruling that a lawsuit against CVS Caremark Corp. can proceed as a class-action to represent roughly 70,000 investors who assert that they lost $3.2 billion in a securities fraud during the 1990s. The case arises from twenty-one lawsuits filed by investors in 1998 against […]
7th Circuit Upholds Ponzi Scheme Convictions
The Frankowski Firm is investigating a Ponzi scheme involving the owners of Fair Finance, which was once a legitimate company that had provided financial services since the Great Depression. The United States Court of Appeals for the Seventh Circuit last week upheld the convictions of the three owners–Timothy Durham, James Cochran, and Rick Snow–who turned […]
Second Circuit Receives Unusual Madoff Appeal
New York federal prosecutors have asked the U.S. Court of Appeals for the Second Circuit to dismiss an appeal by a federal prisoner who asserts that Ponzi schemer Bernie Madoff was convicted because the government used mind-control techniques to influence the court. In July, a handwritten motion seeking to dismiss the case was filed under […]
Ponzi Schemer Confesses To Additional Fraud
Eliyahu Weinstein, a New Jersey Ponzi schemer already serving 22 years in prison for a $200 million real estate scam, confessed in federal court last week that he additionally defrauded potential investors in Facebook’s initial public stock offering and other real estate transactions. He then admitted to laundering the illicit proceeds. Weinstein pleaded guilty to […]
Ponzi Schemes Year In Review: Volume I
Throughout the year, the Frankowski Firm has investigated a number of Ponzi schemes. Thousands of investors have lost millions of dollars by unwittingly putting their money into Ponzi schemes all across the country. This Year In Review summarizes many of the Ponzi schemes that have been uncovered over the past year. Monterey, California financial talk […]