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Category: Alleged Ponzi Schemes

BREAKING NEWS: FTC Seeks Contempt Sanction Against Lawyer For Charles Castro Ponzi Scheme; Says Retainer Paid To Jeffrey Benice Came From Ponzi Proceeds

UPDATED 3:17 P.M. ET (U.S.A.) The Federal Trade Commission has asked a federal judge to find attorney Jeffrey S. Benice in contempt of court for failing to turn over $238,300 to a victims’ compensation pool as required. Benice represented Charles Castro in the Network Services Depot Ponzi scheme involving the sale of Internet kiosks. The…

Nov 10, 2009
Alleged Scott Rothstein Ponzi Probe Unfolding Like ASD Case; Forfeiture Proceeding Filed, But No Early Arrest

Federal prosecutors and agents today began the process of seizing assets from Florida attorney Scott Rothstein, amid allegations he had been operating a Ponzi scheme involving hundreds of millions of dollars since 2005. The early probe is shaping up in largely the same way as the early probe into AdSurfDaily, a Florida business accused last…

Nov 10, 2009
BREAKING NEWS: Prosecution Says It Will Seek Default Judgment Against ASD Assets Named In December 2008 Complaint; Asserts Bowdoin, Others Were Served ‘Direct Notice’ In January 2009, But Did Not File Claims To More Than $1 Million In Property Paid For By Members

UPDATED 8:09 A.M. ET (NOV. 7 U.S.A.) Easy come, easy go? ASD President Andy Bowdoin and unnamed others were served “direct notice” in January 2009 of a forfeiture complaint filed in December 2008 but did not file claims to property the government intends to seize as proceeds of a crime, federal prosecutors said this morning.…

Nov 6, 2009
Another Massive Ponzi Scheme Probe Under Way In Minnesota; Case Reminiscent Of Alleged Ponzis Of Tom Petters, Matthew Scott And Andy Bowdoin

Gerard Frank Cellette Jr. is suspected of operating a Ponzi scheme that involved tens of millions of dollars and was based on bogus printing contracts, prosecutors in Minnesota said yesterday. Cellette, 44, of Andover, Minn., owes investors at least $53 million, according to the felony complaint filed by the office of Hennepin County Attorney Mike…

Nov 6, 2009
FBI Arrests 14, Including 2 Lawyers, In Major Insider-Trading Probe; SEC Says Attorneys Provided Tips For Kickbacks In Latest Scandal That Rocks Wall Street

As the FBI and IRS executed search warrants at the Florida office of attorney Scott Rothstein this morning amid allegations he ran a covert Ponzi scheme that could have drained as much as $500 million from investors, prosecutors up north were concentrating on arresting lawyers in a separate case involving insider trading on Wall Street.…

Nov 5, 2009
Important Filing Deadline In ASD Prosecution Nears

Tomorrow is the deadline for prosecutors to advise U.S. District Judge Rosemary Collyer how they plan to proceed with the December 2008 forfeiture complaint filed against assets of AdSurfDaily Inc. A month ago Judge Rosemary Collyer pointed out that no person or entity had filed claims to property seized in the complaint, the second tied…

Nov 5, 2009
BREAKING NEWS UPDATE: New Pro Se Motion To Intervene In ASD Case Lists Phone Number Associated With ASD Figure Nate Boyd

UPDATED 5:16 P.M. EDT (U.S.A.) NOTE: After additional research, the 10-digit number cited below appears not to be a bank-account number. Rather, it appears to be a telephone number associated with Nate Boyd, a former compliance officer for AdSurfDaily. Boyd’s name also has been associated with the AdViewGlobal (AVG) autosurf. See the comments thread below.…

Nov 4, 2009
Another Huge Ponzi Scheme Shaping Up In Florida

(UPDATED 8:54 P.M. EDT U.S.A. See bottom of story.) Amid a rash of bank failures, an unprecedented number of mortgage foreclosures and a string of major fraud investigations, Florida is bracing for yet another spectacular Ponzi scheme probe. This one involves the alleged sale of fraudulent structured legal settlements by Fort Lauderdale attorney Scott Rothstein…

Nov 4, 2009
‘Key Enabler’: Madoff Accountant Pleads Guilty; Faces 114 Years; Forfeits More Than $3.1 Million, Real Estate

David G. Friehling was one of Bernard Madoff’s “key enablers,” U.S. Attorney Preet Bharara said today after Friehling pleaded guilty to nine criminal charges. Friehling, 49, Madoff’s small-shop accountant, faces up to 114 years in prison, but has agreed to cooperate with the government, Bharara said. “David Friehling was one of the key enablers of…

Nov 3, 2009
Madoff Accountant Expected To Plead Guilty; Charges Demonstrate One Of The Pickles In Which ASD Finds Itself

UPDATED 2:03 P.M. EDT (U.S.A.) Prosecutors have advised a federal judge that the government expects David G. Friehling to plead guilty to charges next week. Friehling was the small-shop accountant for Bernard L. Madoff Investment Securities. The mere fact that Bernard Madoff’s multibillion firm used a small shop that employed a single accountant — Friehling…

Oct 30, 2009
ASDMBA Website Offline; Registration Lapsed Yesterday

UPDATED 9:23 P.M. EDT (U.S.A.) The ASDMBA website appears to be back online. Our earlier story is below . . . The website of the ASD Members Business Association — asdmba.com — is offline. ASDMBA’s domain registration appears to have expired yesterday, and the site now resolves to a GoDaddy.com page that displays ads. Bob…

Oct 29, 2009