Questar Capital Corp’s senior vice president of mergers and acquisitions claims he too was victim of a $250 million alleged Ponzi scheme that affected up to 1,200 investors-many senior citizens residing in Michigan, California, Illinois, New York, Florida, New Jersey, and Ohio.
The Securities and Exchange Commission charged Edward May and E-M Management Co. LLC with selling bogus investments which involved shares in fake Las Vegas casino and resort telecom transactions. “Investment seminars” were held to persuade investors to buy shares. The investors were told they would receive monthly returns for the next 12-14 years.
It turns out that there were never any telecom contracts with any Las Vegas resorts, hotels, and casinos. Some of the hotels and casinos that supposedly had contracts were Motel 6, Hilton, Tropicana, MGM Grand, and Sheraton.
Broker/manager Frank Bluestein, formerly with Questar, sold a substantial amount of the fake units before leaving that firm in 2005. A former director of marketing and partner in Questar reportedly bought two units of ATL Project One LLC for $57,000 in 2006. Allianz Life Insurance Company of North America acquired Questar in 2005 and the two companies merged in 2006. Bluestein continued to sell the fake investments after he left to join another firm in 2005, but there is no word of whether his former boss bought through him.
Investment fraud–especially fraud scams targeting elderly seniors is a growing problem in the United States. It is wrong to take advantage of someone’s lack of knowledge, inexperience, or age and fraud victims can take action to recoup their lost investments. Yet, many victims fail to seek recovery because they are ashamed of being fooled. Take heart! If a senior VP of an investment firm can be a victim of a Ponzi scheme is anyone immune from investment fraud?
If you lost money because you purchased shares sold by Edward May and E-M Management, or if you were the victim of any other investor fraud scam, contact the stockbroker fraud law firm of Shepherd Smith and Edwards immediately. We have helped thousands of investors in the U.S. and abroad get their money back.
Related Web Resources:
B-D exec bought ‘bogus’ shares from May, Investment News, December 14, 2007
SEC v. Edward P. May and E-M Management Co. LLC, Civil Action No. 2-07-CV-14954, SEC, November 20, 2007
Senior Investment Fraud Increases as Population Ages, Consumer Affairs, July 18, 2006