BREAKING NEWS: Host Of ‘Follow The Money’ Christian Radio Show Patrick Kiley Accused In Minnesota Of Operating Ponzi Scheme That Gathered $190 Million
A federal judge has granted an asset freeze and appointed a receiver. At least $51 million in Ponzi payments were made, the SEC said.
Also charged were Trevor G. Cook, UBS Diversified Growth LLC, Universal Brokerage FX Management LLC, Oxford Global Advisors LLC, Oxford Global Partners LLC and four shell companies. Several companies were named relief defendants.
“Cook and Kiley told investors that their money would be invested safely and profitably,” said Merri Jo Gillette, director of the SEC’s Chicago Regional Office. “Instead, they went on a $40 million-plus spending spree with investors’ money and lost another $40 million in risky foreign currency trading.”
The SEC said “Cook and Kiley misappropriated $42.8 million of investors’ money, including $18 million that Cook used to buy ownership interests in two trading firms; $12.8 million that Cook and Kiley transferred to Panama to purportedly finance the construction of a casino; $2.8 million that Cook used to acquire the Van Dusen Mansion [in Minneapolis] and $4.8 million that Cook lost through gambling,” the SEC said.
“Cook and Kiley also misspent approximately $51 million to make Ponzi-like payments to earlier investors,” the SEC charged.
Meanwhile, “Cook and Kiley placed $108 million of investors’ funds into banking and trading accounts in the names of their various shell companies and used some of this money to trade foreign currencies, resulting in losses of at least $48 million,” the SEC said.
Kiley, 71, hosted a program named â€œFollow the Moneyâ€ on 200 stations and Christian short-wave radio.