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Tag: Indiana Ponzi schemes

  • URGENT >> BULLETIN >> MOVING: SEC: Ponzi Money Collateralized Credit Line Used To Fund ‘Bridal Store, A Bounty Hunter Reality Television Show, And A Soul Food Restaurant’

    “Marcum’s scheme began to unravel in mid-2013, when certain of his investors began demanding distributions. Marcum could not comply, because virtually all of his investors’ money is gone. However, Marcum has attempted to reassure his investors that their investment is secure by producing fabricated documents showing that he has purported net worth of nearly $300 million. In fact, Marcum is nearly broke, and his accounts contain less than $2,000.” — SEC complaint against John K. Marcum, Aug. 26, 2013

    americaatrisk4URGENT >> BULLETIN >> MOVING: The SEC has gone to federal court in Indianapolis to obtain an emergency asset freeze against John K. Marcum and Guaranty Reserves Trust LLC. Marcum was accused by the agency of conducting a purported day-trading Ponzi scheme that gathered $6 million, collateralizing a $3 million line of credit with Ponzi proceeds — and using the line to a fund “a bridal store, a bounty hunter reality television show, and a soul food restaurant owned and operated by the bounty hunters.”

    Investors did not know their money was being used in this fashion, the SEC alleged.

    Moreover, the SEC charged, Marcum swindled investors by targeting their retirement savings,  providing account statements showing false gains and promising a guaranteed return of the principal. Some of the money went to “pay personal expenses accrued on credit card bills, including airline tickets, luxury car payments, hotel stays, sports and event tickets, and tabs at a Hollywood nightclub.”

    And when the scheme was imploding, Marcum told existing investors that he intended to recruit new investors, setting the stage for a new round of swindling, the SEC charged.

    “Marcum tricked investors into putting their retirement nest eggs in his hands by portraying himself as a talented trader who could earn high returns while eliminating the risk of loss,” said Timothy L. Warren, acting director of the SEC’s Chicago Regional Office. “Marcum tried to carry on his charade of success even after he squandered nearly all of the funds from investors.”

    Marcum, 49, resides in Noblesville, Ind., the SEC said.

    In a particularly disturbing series of allegations, the SEC alleged that Marcum bartered his life during a conference call with investors in a bid to keep the scam afloat.

    Read the SEC statement.

  • Indiana Man Who Dressed As Pastor As Part Of Ponzi Swindle Sentenced To Prison; Bradley Collins Told Marks ‘He Only Worked With God-Fearing, Church Going People And Was Blessed To Be Blessing Potential Investors’

    “[Bradley] Collins worked under the guise of a religious man and told his victims he only worked with God-fearing, church going people and was blessed to be blessing potential investors. His portrayal of a Christian man put many of his victims at ease, increasing the amount of funds they invested.” — Indiana Secretary of State Connie Lawson, April 26, 2013

    recommendedreading1An Indiana man authorities said sometimes dressed as a pastor to dupe his marks in a $30 million Ponzi swindle has been sentenced to eight years in prison and ordered to make restitution of $2.2 million.

    Bradley Collins, 55, of Fort Wayne, also has agreed to testify as a government witness in a federal prosecution in Michigan involving a conspirator, authorities said.

    Collins scammed at least 129 investors, about 59 of whom lived in Allen County, the venue of the state-level prosecution.

    “Today’s sentencing sends yet another message that Indiana is not a place for white collar crime such as affinity fraud,” said Connie Lawson, Indiana Secretary of State.

    Lawson lauded the office of Allen County Prosecutor Karen Richards and the state Securities Division “for their hard work in protecting Hoosiers from scam artist such as Mr. Collins.”

    In October 2012, the Journal Gazette of Fort Wayne identified the Michigan man as David McQueen, reporting that Collins was alleged to have worked as a sales agent for McQueen.

    Collins pleaded guilty to selling unregistered securities.

    Indiana was one of more than two dozen U.S. states that issued Investor Alerts or cease-and-desist orders against the Profitable Sunrise HYIP “program” earlier this year.  Authorities have described Profitable Sunrise as an affinity scam. Some states have identified alleged sales agents for Profitable Sunrise.

    Lawson’s office noted that “[a]lmost all of Collins victims report he claimed to be a good Christian man and preyed on their religious beliefs. In some cases, he even dressed as a pastor to draw victims into the scam.”

  • BULLETIN: Securities Fraudster/Ponzi Schemer Sentenced To 40 Years

    BULLETIN: Jasen M. Snelling — who last month was sentenced to nearly 11 years in prison in a federal Ponzi-scheme case brought in Ohio — now has been sentenced in Indiana state court to 40 years.

    The state case was brought after an investigation by the office of Indiana Secretary of State Connie Lawson. Snelling was accused of selling unregistered securities, theft and using victims’ money as his own. The scam involved entities known as CityFund Advisory and Dunhill Investment.

    “While we are pleased with today’s sentencing, we will continue to aggressively pursue this case in criminal courts, civil courts or administrative proceedings, if necessary, in order to hold all those accountable who contributed to the financial losses and deep sorrow of these victims,” Lawson said in a statement today.

    Snelling, a resident of Cincinnati, was prosecuted in Indiana by Franklin County Prosecutor Mel Wilhelm, Lawson said, adding that Indiana investors lost more than $3 million.

    “This sentencing showcases cooperation between state and local officials,” Lawson said. “Securities fraud is a serious crime and by working together we can root out more fraud and abuse and stop these schemes before investors lose millions.”

    After pleading guilty in June to federal charges, Snelling, 48, was sentenced in October to 131 months and ordered to pay $5.3 million in restitution. The scam created about 72 victims, federal prosecutors said.

    “Consistent with a classic Ponzi scheme, early investors were paid interest or return of capital payments, which were not generated by investment earnings, but rather by monies solicited from later investors,” U.S. Attorney Carter M. Stewart of the Southern District of Ohio said at the time. “These payments served to lull the victims into a false sense of security and to prevent or delay the discovery of the fraudulent investment scheme.”

    Snelling compounded matters by engaging in “obstruction” and tax crimes, federal prosecutors said.

    And, they noted, “Snelling was ordered to forfeit a boat, trailer and real estate he owned in Michigan.”

    The IRS and the U.S. Postal Inspection Service handled the federal probe.