BULLETIN: Victims Of ‘3 Hebrew Boys’ Forex Ponzi Swindle That Devolved Into ‘Sovereign Citizen’ Sideshow Will Get Back 46 Cents On The Dollar
UPDATED 12:52 P.M. EDT (U.S.A., MAY 18): In an unusually large recovery by a court-appointed receiver, victims of the “3 Hebrew Boys” Forex Ponzi scheme and fraud caper in South Carolina will receive back about 46 cents on the dollar, according to filings in federal court.
The Post and Courier of Charleston is reporting this afternoon that it has confirmed the recovery figure with the office of U.S. Attorney Bill Nettles.
On April 25, according to the website of receiver Beattie B. Ashmore, the receiver filed a distribution plan showing that 3,842 court-approved claimants had been identified. The document also cites the figure of 46 cents. Ashmore has sold real estate, cars, a party bus and other property linked to the caper, which gathered $82 million and also acquired a Gulfstream jet.
Tony Pough, Joseph Brunson and Timothy McQueen — the “3 Hebrew Boys” — are serving combined prison terms of 84 years. The sentences handed down by U.S. District Judge Margaret B. Seymour were the longest Ponzi sentences ever handed down in South Carolina.
In 2009, Brunson declared himself “sovereign” and accused then-U.S. Attorney Walt Wilkens of treason, saying Wilkens had no authority over him.
“Sovereign citizens” have an irrational belief that laws to not apply to them. It is somewhat common for purported “sovereigns” to become involved in financial-fraud schemes.
The “3 Hebrew Boys” scam positioned itself as a debt-relief ministry. The “3 Hebrew Boys” name is taken from a biblical tale of believers who escaped a furnace by relying on their faith. The caper also presented a form of affinity fraud.