September 2022 Ponzi Scheme Roundup

Posted by Kathy Bazoian Phelps 

Below is a summary of the activity reported for September 2022. News in cryptocurrency schemes was prevalent this month, with 16 cryptocurrency firms hitting the Ponzi scheme news. At least 16 new Ponzi schemes worldwide were reported this past month, along with 4 guilty pleas, and more than 88 years of prison sentences. The average age for the alleged Ponzi schemers was approximately 47. Please feel free to post comments about these or other Ponzi schemes that I may have missed. 

Glenn Arcaro, 45, of California, was sentenced to 38 months in prison in connection with the BitConnect cryptocurrency scheme. He fraudulently marketed the scheme that defrauded at least 4,500 people and involved $2.4 billion. Arcaro promised guaranteed returns from BitConnect’s “Trading Bot” and “Volatility Software.” BitConnect’s founder, Satish Kumbhani of India, was indicted earlier this year. 

August 2022 Ponzi Scheme Roundup

Posted by Kathy Bazoian Phelps 

Below is a summary of the activity reported for August 2022. The reported stories reflect at least 4 new Ponzi schemes worldwide, 1 guilty plea, more than 71 years of prison sentences, and an average age of approximately 51 for the alleged Ponzi schemers. Please feel free to post comments about these or other Ponzi schemes that I may have missed. 

Gino Accettola, 55, was sentenced to 11 years and 3 months in prison in connection with a scheme in which 17 people were defrauded out of over $4 million. He promised investors high short-term returns from investments in supposed commercial construction projects in Michigan and Florida. 

July 2022 Ponzi Scheme Roundup

Posted by Kathy Bazoian Phelps 

Below is a summary of the activity reported for July 2022. The reported stories reflect at least 3 new Ponzi schemes worldwide, 2 guilty pleas, more than 53 years of prison sentences, and an average age of approximately 47 for the alleged Ponzi schemers. Please feel free to post comments about these or other Ponzi schemes that I may have missed. 

Paulette Carpoff, 48, was sentenced to 11 years in prison and ordered to pay $661 million in restitution in connection with the scheme run with her husband, Jeff Carpoff, through DC Solar. Jeff Carpoff was previously sentenced to 30 years in prison and ordered to pay $790.6 million in restitution. DC Solar manufactured solar generator units to be mounted on trailers, but generators were sold that did not exist.

Cryptocurrency in Bankruptcy: Breaking It Into Small Bytes

By Kathy Bazoian Phelps

July 24, 2022

This article covers the Who, What, Where and Hows of issues arising when cryptocurrency lands in a bankruptcy proceeding, with a particular focus on cryptocurrency exchanges and investment funds. Those who think they own the cryptocurrency reflected on their monthly statements may want to keep reading to learn how to assess the risks associated with those exchanges and investments.

June 2022 Ponzi Scheme Roundup

Posted by Kathy Bazoian Phelps 

Below is a summary of the activity reported for June 2022. The reported stories reflect at least 6 new Ponzi schemes worldwide, one guilty plea, more than 50 years of prison sentences, and an average age of approximately 53 for the alleged Ponzi schemers. Please feel free to post comments about these or other Ponzi schemes that I may have missed. 

May 2022 Ponzi Scheme Roundup

Posted by Kathy Bazoian Phelps 

Below is a summary of the activity reported for May 2022. The reported stories reflect at least 12 new Ponzi schemes worldwide, 3 convictions, 2 guilty pleas, more than 64 years of prison sentences, and an average age of approximately 54 for the alleged Ponzi schemers. Please feel free to post comments about these or other Ponzi schemes that I may have missed. 

April 2022 Ponzi Scheme Roundup

Posted by Kathy Bazoian Phelps 

Below is a summary of the activity reported for April 2022. The reported stories reflect at least 8 new Ponzi schemes worldwide, 3 guilty pleas, more than 39 years of prison sentences, and an average age of approximately 49 for the alleged Ponzi schemers. Please feel free to post comments about these or other Ponzi schemes that I may have missed. 

March 2022 Ponzi Scheme Roundup

Posted by Kathy Bazoian Phelps 

Below is a summary of the activity reported for March 2022. The reported stories reflect at least 15 new Ponzi schemes worldwide, 4 guilty pleas, more than 30 years of prison sentences, and an average age of approximately 56 for the alleged Ponzi schemers. Please feel free to post comments about these or other Ponzi schemes that I may have missed. 

February 2022 Ponzi Scheme Roundup

Posted by Kathy Bazoian Phelps 

Below is a summary of the activity reported for February 2022. The reported stories reflect at least 5 new Ponzi schemes worldwide, 3 guilty pleas, nearly 54 years of prison sentences, and an average age of approximately 53 for the alleged Ponzi schemers. Please feel free to post comments about these or other Ponzi schemes that I may have missed. 

January 2022 Ponzi Scheme Roundup

Posted by Kathy Bazoian Phelps 

Below is a summary of the activity reported for January 2022. The reported stories reflect at least 5 new Ponzi schemes worldwide, 3 guilty pleas, more than 48 years of prison sentences, and an average age of approximately 47 for the alleged Ponzi schemers. Please feel free to post comments about these or other Ponzi schemes that I may have missed. 

December 2021 Ponzi Scheme Roundup

Posted by Kathy Bazoian Phelps 

Below is a summary of the activity reported for December 2021. The reported stories reflect at least 2 new Ponzi schemes worldwide, 4 guilty pleas, more than 48 years of prison sentences, and an average age of approximately 46 for the alleged Ponzi schemers. Please feel free to post comments about these or other Ponzi schemes that I may have missed. 

November 2021 Ponzi Scheme Roundup

Posted by Kathy Bazoian Phelps 

Below is a summary of the activity reported for November 2021. The reported stories reflect at least 3 new Ponzi schemes worldwide, 1 guilty plea, more than 116 years of prison sentences, and an average age of approximately 45 for the alleged Ponzi schemers. Please feel free to post comments about these or other Ponzi schemes that I may have missed. 

October 2021 Ponzi Scheme Roundup

Posted by Kathy Bazoian Phelps 

Below is a summary of the activity reported for October 2021. The reported stories reflect at least 8 new Ponzi schemes worldwide, 1 guilty plea, more than 78 years of prison sentences, and an average age of approximately 55 for the alleged Ponzi schemers. Please feel free to post comments about these or other Ponzi schemes that I may have missed.

September 2021 Ponzi Scheme Roundup

Posted by Kathy Bazoian Phelps 

Below is a summary of the activity reported for September 2021. The reported stories reflect at least 8 new Ponzi schemes worldwide, 6 guilty pleas, more than 67 years of prison sentences, and an average age of approximately 50 for the alleged Ponzi schemers. Please feel free to post comments about these or other Ponzi schemes that I may have missed. 

August 2021 Ponzi Scheme Roundup

Posted by Kathy Bazoian Phelps 

Below is a summary of the activity reported for August 2021. The reported stories reflect at least 4 new Ponzi schemes worldwide, 3 guilty pleas, more than 32 years of prison sentences, and an average age of approximately 57 for the alleged Ponzi schemers. Please feel free to post comments about these or other Ponzi schemes that I may have missed. 

July 2021 Ponzi Scheme Roundup

Posted by Kathy Bazoian Phelps 

Below is a summary of the activity reported for July 2021. The reported stories reflect at least 5 new Ponzi schemes worldwide, 5 guilty pleas, more than 72 years of prison sentences, and an average age of approximately 52 for the alleged Ponzi schemers. Please feel free to post comments about these or other Ponzi schemes that I may have missed.  

George S. Blankenbaker Jr., 56, was sentenced to 5 years in prison in connection with a fraudulent scheme run through his companies, three business entities, Stargrower Commercial Bridge Loan Fund 1 LLC, Stargrower Asset Management LLC and EDU Holding Trust. More than 100 individuals invested more than $10 million in the scheme that supposedly needed funds to finance the use of shipping containers of food. 

June 2021 Ponzi Scheme Roundup

Posted by Kathy Bazoian Phelps 

Below is a summary of the activity reported for June 2021. The reported stories reflect at least 9 new Ponzi schemes worldwide, 2 guilty pleas, more than 34 years of prison sentences, and an average age of approximately 46 for the alleged Ponzi schemers. Please feel free to post comments about these or other Ponzi schemes that I may have missed.  

Lee Anglin, 50, was sentenced to 6 months in prison. He had been released from prison three years ago after serving 12 of his 15-year prison sentence for a $10 million real estate Ponzi scheme. He was sentenced again for after violating the terms of his probation by engaging in new money-making schemes that included providing legal services for inmates even though he isn’t a lawyer and negotiating to buy two businesses in Utah.

May 2021 Ponzi Scheme Roundup

Posted by Kathy Bazoian Phelps 

Below is a summary of the activity reported for May 2021. The reported stories reflect at least 4 new Ponzi schemes worldwide, 1 guilty plea, about 77 years of prison sentences, and an average age of approximately 55 for the alleged Ponzi schemers. Please feel free to post comments about these or other Ponzi schemes that I may have missed.  

Ted Brent Alexander, 55, and Jon Darrell Seawright, 49, of Mississippi, were indicted on charges relating to the $100 million scheme run through Madison Timber Properties LLC that was owned by Arthur Lamar Adams. The two solicited over $20 million from more than 50 investors in connection with the scheme. The scheme promised guaranteed returns to investors who thought they were lending money to a broker enterprise purchasing timber that was then to be marketed to multiple lumber mills.

April 2021 Ponzi Scheme Roundup

Posted by Kathy Bazoian Phelps 

Below is a summary of the activity reported for April 2021. The reported stories reflect at least 4 new Ponzi schemes worldwide, 3 guilty pleas, about 22 years of prison sentences, and an average age of approximately 49 for the alleged Ponzi schemers. Please feel free to post comments about these or other Ponzi schemes that I may have missed.  

George S. Blankenbaker Jr., 54, of Indianapolis was charged and agreed to plead guilty in connection with an alleged Ponzi scheme run through Stargrower Commercial Bridge Loan Fund 1 LLC, Stargrower Asset Management LLC, and EDU Holding Trust. Blankenbaker is the president of Stevia Corp. About 109 people invested more than $11 million in the scheme and were told that their funds would be used to finance the use of shipping containers of food in the international consumer products market. Blankenbaker instead diverted funds for personal expenses and unrelated business ventures. A total of over $1.4 million was lost by 34 investors. 

March 2021 Ponzi Scheme Roundup

Posted by Kathy Bazoian Phelps 

Below is a summary of the activity reported for March 2021. The reported stories reflect at least 5 new Ponzi schemes worldwide, 3 guilty pleas, about 50 years of prison sentences, and an average age of approximately 47 for the alleged Ponzi schemers. Please feel free to post comments about these or other Ponzi schemes that I may have missed.  

Jose Angel Aman, 51, of Florida, the co-founder of Argyle Coin, was banned from the securities industry but also released from an obligation to pay a $4.5 million fine to the SEC after more than $23.8 million was paid to the SEC in restitution in a parallel case. Aman operated three successive Ponzi schemes and was sentenced to 7 years in prison in 2019.

February 2021 Ponzi Scheme Roundup

Posted by Kathy Bazoian Phelps 

Below is a summary of the activity reported for February 2021. The reported stories reflect at least 3 new Ponzi schemes worldwide, 1 guilty plea, over 62 years of prison sentences, and an average age of approximately 51 for the alleged Ponzi schemers. Please feel free to post comments about these or other Ponzi schemes that I may have missed.  

Edison Denizard, 41, of Florida, was sentenced to 4 years and 9 months in connection with a music concert scheme. Denizard, along with his co-conspirator, Andres Fernandez, represented that investor funds would be used for specific music concerts by top artists. Victims lost about $7.5 million in the scheme. Fernandez previously pleaded guilty and was sentenced last year to 10 years in prison. 

January 2021 Ponzi Scheme Roundup

Posted by Kathy Bazoian Phelps 

Below is a summary of the activity reported for January 2021. The reported stories reflect at least  3 new Ponzi schemes worldwide, 4 guilty pleas, 16 years of prison sentences and one life sentence, and an average age of approximately 51 for the alleged Ponzi schemers. Please feel free to post comments about these or other Ponzi schemes that I may have missed.  

Stacey L. Bean, 35, and Travis Laska, 26, were fined $7,500 each in connection with their role with the VisionQuest Wealth Management LLC Ponzi scheme run by Stephen C. Peters. They were accused of assisting in a fraudulent offering of $10.1 million in promissory notes. Peters also owned VisionQuest Capital LLC and VQ Wealth LLC.

December 2020 Ponzi Scheme Roundup

Posted by Kathy Bazoian Phelps 

Below is a summary of the activity reported for December 2020. The reported stories reflect at least  3 new Ponzi schemes worldwide, 3 guilty pleas, over 30 years of prison sentences and one life sentence, and an average age of approximately 56 for the alleged Ponzi schemers. Please feel free to post comments about these or other Ponzi schemes that I may have missed.  

Sanjeev Acharya, of California, and his company SiliconSage Builders LLC aka Silicon Sage Builders, were charged by the SEC with running an alleged $119.2 million Ponzi scheme. The scheme promised returns to investors of 23% per year. Silicon Sage financed real estate projects in northern California by selling promissory notes and membership interests in entities that loaned money to the projects. The scheme targeted the South Asian community in northern California.

November 2020 Ponzi Scheme Roundup

Posted by Kathy Bazoian Phelps

Below is a summary of the activity reported for November 2020. The reported stories reflect at least 9 new Ponzi schemes worldwide, 1 guilty plea, over 34 years of prison sentences, and an average age of approximately 60 for the alleged Ponzi schemers. Please feel free to post comments about these or other Ponzi schemes that I may have missed.  

Joseph S. Anile II, 56, was sentenced to 10 years and prison and ordered to pay $3.2 million in restitution in connection with the Oasis International Group Ponzi scheme that defrauded investors out of $72 million. The scheme involved foreign exchange trading that defrauded at least 700 investors. 

October 2020 Ponzi Scheme Roundup

Posted by Kathy Bazoian Phelps 

Below is a summary of the activity reported for October 2020. The reported stories reflect at least 9 new Ponzi schemes worldwide, 6 guilty pleas, 202 years of prison sentences, and an average age of approximately 51 for the alleged Ponzi schemers. Please feel free to post comments about these or other Ponzi schemes that I may have missed.   

Steven F. Brown, 52, an accountant in California, agreed to plead guilty to charges that he ran a $3.3 million Ponzi scheme that promised investors returns from foreign exchange currency. Brown ran the scheme through Alpha Trade Analytics Inc. and promised investors monthly returns of around 10%.

September 2020 Ponzi Scheme Roundup

Posted by Kathy Bazoian Phelps 

Below is a summary of the activity reported for September 2020. The reported stories reflect at least 11 new Ponzi schemes worldwide, 4 guilty pleas, 31 years of prison sentences, and an average age of approximately 59 for the alleged Ponzi schemers. Please feel free to post comments about these or other Ponzi schemes that I may have missed.   

Joseph Frank Abel, 50, of California, pleaded guilty to charges in connection with a cryptocurrency mining fraud that involved at least $722 million. Abel admitted that he sold unregistered securities for BitClub Network. Matthew Brent Goettsche, Russ Albert Medlin, Jobadiah Sinclair Weeks were also charged in connection with the scheme. 

August 2020 Ponzi Scheme Roundup

Posted by Kathy Bazoian Phelps 

Below is a summary of the activity reported for August 2020. The reported stories reflect at least 9 new Ponzi schemes worldwide, 2 guilty pleas, 55 years of prison sentences, and an average age of approximately 56 for the alleged Ponzi schemers. Please feel free to post comments about these or other Ponzi schemes that I may have missed.

   

Clarence Dean Alford, 67, was charged by the SEC for allegedly defrauding investors in a Ponzi scheme run through Allied Energy Services, LLC. The scheme involved at least 100 investors out of about $23 million, promising them returns of 12% to 34% from investments in energy projects.

July 2020 Ponzi Scheme Roundup

Posted by Kathy Bazoian Phelps

Below is a summary of the activity reported for July 2020. The reported stories reflect at least 10 new Ponzi schemes worldwide, 5 guilty pleas, 95 years of prison sentences, and an average age of approximately 54 for the alleged Ponzi schemers. Please feel free to post comments about these or other Ponzi schemes that I may have missed.

   

Gregory Altieri, 53, the president of LNA Associates, was charged in New York with running a Ponzi scheme that took in between $75 million and $85 million from more than 80 investors. Altieri promised investors a 30% to 70% return within months from nonexistence wholesale jewelry deals where he would supposedly buy jewelry at closeout prices and resell it at a high profit.

June 2020 Ponzi Scheme Roundup

Posted by Kathy Bazoian Phelps 

Below is a summary of the activity reported for June 2020. The reported stories reflect at least 8 new Ponzi schemes worldwide and an average age of approximately 55 for the alleged Ponzi schemers. Please feel free to post comments about these or other Ponzi schemes that I may have missed.

Timothy J. Allcott, 58, and Thomas D. Renison, were charged in connection with an alleged Ponzi scheme run through ARO Equity LLC. In a parallel proceeding commenced by the SEC, it was alleged that Allcott and Renison raised more than $6 million from at least 15 investors, promising interest payments between 8% and 12% per year.

May 2020 Ponzi Scheme Roundup

Posted by Kathy Bazoian Phelps

Below is a summary of the activity reported for May 2020. The reported stories reflect at least 5 new Ponzi schemes worldwide; at least 2 guilty pleas and convictions; and an average age of approximately 59 for the alleged Ponzi schemers. Please feel free to post comments about these or other Ponzi schemes that I may have missed.

   

Neil Burkholz, 82, and Frank Bianco, 70, of Florida, were ordered to pay $2.8 million in disgorgement and penalties in connection with a $6 million Ponzi scheme run through Palm Financial Management and Shore Management Systems. The scheme defrauded at least 55 investors and targeted elderly investors.

April 2020 Ponzi Scheme Roundup

Posted by Kathy Bazoian Phelps

Below is a summary of the activity reported for April 2020. The reported stories reflect at least 5 new Ponzi schemes worldwide; at least 3 guilty pleas and convictions; new prison sentences of 39 years; and an average age of approximately 59 for the alleged Ponzi schemers. Please feel free to post comments about these or other Ponzi schemes that I may have missed.

   

Blessing Loom, an alleged Ponzi scheme, has resurfaced in Utah. The scheme, promoted on social media, displays an octagon that must be filled with names of participants. It promises that if the investor pays $100 to get a spot and recruits other people, then the investor name makes it to the center of the octagon, and will be paid $800.

March 2020 Ponzi Scheme Roundup

Posted by Kathy Bazoian Phelps

Below is a summary of the activity reported for March 2020. The reported stories reflect at least 7 new Ponzi schemes worldwide; at least 4 guilty pleas and convictions; and an average age of approximately 53 for the alleged Ponzi schemers. Please feel free to post comments about these or other Ponzi schemes that I may have missed.

   

Stacey L. Beane, 35, Justin N. Deckert, 30, and Travis Laska, 26, were accused by the SEC of helping to hide a Ponzi scheme run through VisonQuest Wealth Management LLC. The three were employees of VisionQuest and are accused of assisting in a fraudulent offering of $10.1 million in promissory notes. Stephen C. Peters was the owner and principle of VisionQuest, and he also owned VisionQuest Capital LLC and VQ Wealth LLC.

Should Bernie Madoff go free?

Bernie Madoff, currently serving his 150-year prison term, is seeking a compassionate release due to what is described as terminal kidney failure and less than 18 months to live. We are interested in your views on whether Madoff should be released after having served 11 of the 150 year sentence.  Click the link below to express your views on the following poll:

February 2020 Ponzi Scheme Roundup

Posted by Kathy Bazoian Phelps

Below is a summary of the activity reported for February 2020. The reported stories reflect at least 5 new Ponzi schemes worldwide; at least 5 guilty pleas and convictions; over 19 years of newly imposed sentences for people involved in Ponzi schemes; and an average age of approximately 51 for the alleged Ponzi schemers. Please feel free to post comments about these or other Ponzi schemes that I may have missed.

January 2020 Ponzi Scheme Roundup

Below is a summary of the activity reported for January 2020. The reported stories reflect at least 5 new Ponzi schemes worldwide; at least 5 guilty pleas and convictions, over 24 years of newly imposed sentences for people involved in Ponzi schemes; and an average age of approximately 52 for the alleged Ponzi schemers. Please feel free to post comments about these or other Ponzi schemes that I may have missed.

   

Malik Akbar’El aka Tyrone David Williams aka Skipper David Williams, 52, of Arkansas, was accused of running a Ponzi scheme. He ran the alleged scheme through Akbar Williams & Associates Legal Services Corporation and promised 300% to 480% returns from supposed investments in charities and organizations that would generate a profit. He allegedly defrauded 252 investors.

December 2019 Ponzi Scheme Roundup

Posted by Kathy Bazoian Phelps

Below is a summary of the activity reported for December 2019. The reported stories reflect at least 7 new Ponzi schemes worldwide; at least 4 guilty pleas and convictions, over 34 years of newly imposed sentences for people involved in Ponzi schemes; and an average age of approximately 51 for the alleged Ponzi schemers. Please feel free to post comments about these or other Ponzi schemes that I may have missed.

   

Matthew Brent Goettsche, 37, Iovadiah Sinclair Weeks, 38, and Joseph Franks Abel, 49, were charged in connection with an alleged high-tech Ponzi scheme run through BitClub Network. A fourth man, Silviu Catalin Balaci, was arrested in Germany in connection with the scheme. The scheme defrauded investors out of $722 million and took funds from investors to purportedly purchase shares of cryptocurrency mining pools. Internal chat messages intercepted by authorities state that the internal business model was built “on the back s of idiots” by targeting the “typical dumb MLM investor” who will convince other “morons” to join.