The wolves are out there, and their sheep suits are custom-made.
The financial crisis of 2008 flushed out many scams, including Bernard Madoff’s record-setter, as investors demanded redemptions that scam artists could not produce. We have been tracking the building of the post-Madoff wave of scams. The U.S. Securities and Exchange Commission (“SEC”) believes that it has found another scam in that wave.
Twelve years is a long time to run a Ponzi scheme. Bernard Madoff aside, most collapse within five years. Yet, the U.S. Securities and Exchange Commission (“SEC”) claims that Enrique F. Villalba, Jr, of Cuyahoga Falls, Ohio began raising money from his alleged victims in 1998. A look at the specific allegations shows why Villalba, if the allegation are true, was able to keep a scam running for that long.
James Terry Brinley of Millington, Tennessee pleaded guilty this week “to carrying out a Ponzi scheme that defrauded investors of about $3.5 million.”
Dennis Bolze told prospective investors that he was a successful stock trader. More than 100 people believed him. Operating from offices in Gatlinburg, Tennessee, he ultimately raised approximately $20 million, more than enough to build a 16,000 square foot mansion and treat himself to finest of what money can buy. According to federal authorities Bolze used money [...]
CPA Involved in Ponzi Loses License
This case reminds us that Ponzi scamsters often work through accountants and insurance agents because those people often have a long list of clients who have trusted them for years.