NY ATTORNEY GENERAL: Unlimited Wealth Associates Pulled Off ‘Seemingly Limitless Fraud And Deceit’ In Ponzi And Pyramid Scheme That Operated Nationwide

New York Attorney General Andrew Cuomo

New York Attorney General Andrew Cuomo

A company known as Unlimited Wealth Associates operated Ponzi and pyramid schemes that obtained at least $7 million, New York’s top prosecutor said today.

“While this company promised unlimited wealth, our investigation found seemingly limitless fraud and deceit as they went after investors’ savings,” said Attorney General Andrew M. Cuomo.

Prosecutors “will continue to have zero tolerance for financial schemers trying to set up shop in New York,” Cuomo said.

Unlimited Wealth Associates is controlled by Robert Donald and Annette Stuart Donald, Robert Donald’s wife. Investigators obtained an asset freeze amid allegations that the Donalds were running a “series of get-rich-quick schemes” from their home in Brooklyn.

Company names under which the schemes operated  included Unlimited Wealth Associates, United Wealth Associates, Unlimited Enterprises and Wealth Associates Group, prosecutors said.

Among the allegations were that the Donald-connected companies had been operating Ponzi and pyramid schemes since at least 2004 and violating a state securities law known as the “Martin Act.”

More than 1,000 investors across the United States were affected, prosecutors said.

When the schemes began to collapse, Robert Donald lied to keep investors at bay, prosecutors said.

Investigators determined that “Donald was covering up the fraudulent operation by informing investors that their investments have been lost or stolen by those with whom Donald purportedly invested the victims’ funds,” prosecutors said. “Donald told victims that he was raising new funds that would be invested so that both new and old investors would recover their principal and receive handsome profits.”

As part of the probe, prosecutors said, investigators obtained “emails, newsletters and Web site pages” showing the companies “routinely made false and misleading representations that investors could earn enormous profits on modest investments, with little or no risk involved.”

The website for Unlimited Wealth Associates now appears to be throwing a server error.

Prosecutors said the scheme included over-the-top hype. Investors in one program were told that $5,000 could turn into $1.2 million in 18 months.

Here is how investigators described the false claims:

  • Investors in a so-called “Wealth Units” program were falsely informed that they would “earn 2% per business day, payable every 60 business days, for a total of 180 business days.”
  • Investors in an “Infinite Cycle of Wealth” program were falsely informed that the program “provides you with UNLIMITED INCOME FOR LIFE! You can receive thousands of dollars over and over again – to INFINITY!” and “With a ONE TIME INVESTMENT contribution of $5,000 you can earn over $1.2 million, once you complete 7 phases which takes approximately eighteen months.”
  • Investors in a “Capital Growth Program” were falsely informed that they could “receive up to 100% return every month” and would “have the opportunity to MAKE WELL OVER $500,000 for each $1000 that you deposit, within 15 months from the day the funds enter into trade.”
  • Investors in a “40 Week Proposal” were falsely informed that their expected return would be “40 payments of UP TO 50% for each $1000 contribution. That’s a total of $20,000 per $1000.”
  • Many of the representations falsely claimed that there was no risk involved in the investments. One such false statement promised “The Unlimited Wealth Units is an ingenious RISK FREE way to LET YOUR MONEY WORK FOR YOU!” (emphasis in original).

The SEC and U.S. Postal Inspection Service assisted in the probe.

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2 Responses to “NY ATTORNEY GENERAL: Unlimited Wealth Associates Pulled Off ‘Seemingly Limitless Fraud And Deceit’ In Ponzi And Pyramid Scheme That Operated Nationwide”

  1. Investors in a so-called “Wealth Units” program were falsely informed that they would “earn 2% per business day, payable every 60 business days, for a total of 180 business days.”

    That sounds so much like PIPS!
    The rest of the drivel has a familiar ring to it as well. Did anyone actually believe this rubbish? Surely no one, no one at all, “invested” in this believing this was real? I find it hard to believe that there would be any “real” victims with this one.

    The press release is a real hoot!
    http://best-new-business.com/

    Who We Are Not:

    An investment Company
    A High Yield Investment (HYIP)
    A Network Marketing or MLM company
    A Get Rich Quick Program

    Why would they need to say they are not a HYIP?

      (Quote)

  2. Mike Check this out. It’s the guy Dad had a bunch of money with. I’m guessing over $10,000.00. Mark

      (Quote)

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