Ponzi scheme - Morningbull

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had unfruitful meetings with Traynor to have money returned, including those who met him through Bradenton Christian Reformed Church and Bradenton Christian School. Representatives of the Florida Department of Law Enforcement called Traynor's scam a "classic Ponzi-scheme". Traynor had sold investments in Manatee County for InterSecurities Inc., also known as ISI, since 1997, and was the company's Bradenton branch manager before he was fired in February 2007. • Michael Eugene Kelly (born October 6, 1949) is the owner of Yucatan Resorts, Resort Holdings International, Puerto Cancun and Avanti Motor Corporation. He is accused by the FBI and the United States Attorney's Office of operating a $428 million Ponzi scheme that defrauded over a thousand elderly and senior citizens of their retirement money. Kelly was arrested in his hospital room at the Mayo Clinic on December 22, 2006 just before he was about to be discharged and return to one of his homes in Cancún, Mexico. In pretrial services, Kelly claimed that he makes $55,000 a year and only has $48,000 in assets. In spite of his claim of meager earnings, Kelly offered a private jet, four yachts and race track as collateral at his detention hearing. He was denied bail and is currently in the Metropolitan Correctional Center, Chicago waiting for arraignment. Since his arrest, Kelly has attempted to avoid indictment by arranging a plea agreement that includes paying restitution to the victims. • In 2008, many Ponzi schemes are flourishing in Colombia [39] . Those schemes for which complaints are filed are the only ones that the Colombian police have been able to stop and have their organizers detained. Curiously, an organizer of one of these schemes was in fact a policeman. There are many Ponzi schemes going on right now, and even though they are quite popular and, as of February 2008, at least one of the organizers publicly admitted operating what can be defined as a Ponzi scheme, authorities haven't been able to act legally against the people behind organizations such as People Winner, DRFE (Dinero Rápido, Fácil y Efectivo - Quick, Easy and Effective Money) and DMG which have strong support from individuals who have already got their profits. The most prominent of these organizations is DMG, which has a strong support from their investors, since it hasn't faced any complaint from their customers in three years. However, since DMG's mechanisms are obscure and haven't been revealed by its founder, David Murcia Guzmán; and rumours and accusations linking DMG with Chupeta, a well-known drug lord, Colombian government closed DMG on November 17th [40] . Throughout this exchange of accusations, Murcia Guzmán has accused Grupo Aval and its owner, Luis Carlos Sarmiento, of making fake pyramids like DRFE and pushing Colombian government and media to criminalize DMG [41] . Murcia Guzmán is now detained [42] . • Matteo Quintavalle is - according to the source quoted in the following footnote - an Italian scammer, who cheated investors with more than US$10 million by promising very high yield in Costa Rican real estates and hotels. After being involved in a serie of frauds in Italy, Mr. Quintavalle grabbed money in San Francisco,California and went to Costa Rica and bought hotels, resorts and even soccer players ' contracts and gave false contracts to the original investors let they think they were owning those properties in Costa Rica. Mr. Quintavalle is currently under arrest awaiting trial.[33 • Currently (May 2008) the Finnish National Bureau of Investigation is investigating a long running scheme where possibly over 10,000 people could have lost up to €100 million investing in WinCapita's WinClub "investment club", supposedly a currency
trading scheme. Investigators now say they have found no evidence that WinCapita ever engaged in any legitimate currency trading at all. [43] • On May 7, 2008, The U.S. SEC filed suit against The Little Shell Goldquestinternational (site currently down due to court order) as an alleged Ponzi scheme [44] . The company claimed an 87.5% YoY return on an investment by trading on the Foreign Exchange. According to SEC filing, as much as 80% of an investors' investment would be paid out as commissions. On May 20, 2008, U.S. District Judge Lloyd George authorized the use of necessary force to help a receiver obtain property and records of GoldQuest [45] . Cook receiver services was appointed by the court in order to take such action that is necessary and appropriate to preserve and take control of and to prevent the dissipation, concealment, or disposition of any assets of, or managed by, Gold Quest and its affiliates. [46] . • On May 27, 2008, the Philippine National Bureau of Investigation (NBI) filed a case of syndicated estafa based on complaint of Korina Sanchez and 15 other investors, against the officials of Power Generation Trading Corporation regarding a multimillion-peso investment scam by using the “Ponzi” scheme. Those indicted were: Chief executive officer Rudy Enrique Olalia, treasurer Lourdes Olalia, corporate secretary Marie Frances Yuvienco and 21 others, including Bernie De Venecia. [47][48] • In September 2008 a one-time English teacher called Sakvithi Ranasinghe vanished with around $9 million in depositors' money in Sri Lanka. See also • Stock Market • Finance • Multi-level marketing • Holiday Magic • High-yield investment program • Investment • Bucket shop • List of finance topics • Pyramid scheme • Lottery • Get-rich-quick schemes • Matrix scheme • Reed Slatkin • Double Shah • Federal Reserve References 1. ^ "Ponzi Schemes" , which also describes the original Ponzi scheme in detail)
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