Petters Ponzi Scam Victims to Get Back $172M
Victims of Tom Petters’ $3.65B Ponzi scam collapse are about to get $172M. Petters were sentenced to 50 years behind bars for bilking investors out of all that money.
Investors thought they were putting their money into the purchase of consumer electronic goods that were to be resold at a profit to retailers. Instead, the funds went toward supporting Petters’ companies and his extravagant lifestyle. There are also over 100 lawsuits pending against specific investors that will hopefully bring in more money for the victims.
Petters was convicted of wire fraud, conspiracy to commit wire fraud, conspiracy to commit mail fraud, mail fraud, conspiracy to commit money laundering, and money laundering.
Potential investigators were given bogus documents listing goods that Petters Company’ PCI had purportedly bought from vendors and then sold to retailers. Falsified records made it appear as if PCI had invested money, too. In Ponzi-like fashion, earlier investors were paid with the money of subsequent investors rather than from real profits.
Appeals Court Affirms Ex-Madoff Employees’ Convictions
The U.S. Court of Appeals for the Second Circuit said that the convictions of five former employees who worked for Bernard Madoff were proper. Daniel Bonventre, JoAnn Crup, Annette Bongiorno, George Perez, and Jerome O’Hara were convicted in 2014 for aiding Madoff in his $20B Ponzi scam and making money from the fraud.
They claimed that like the retail investors, wealthy folk, celebrities, charities, institutions, and others that Madoff had bilked they too had been deceived. Now, they will remain in prison and must contend with millions of dollars in financial forfeitures.
Madoff is serving 150 years behind bars for running his scam, which went on for years.
Grand Jury Indicts NY Real Estate Investor
A federal grand jury indicted Alisa Adler on another charge of wire fraud. An earlier wire fraud charge was brought against her last year in federal court.
Adler, who ran ASG Real Estate Services Group, is accused of looking for investors wanting to make money through real estate. She took about $74K from three investors from ’09 – ’12.
However, instead of investing the money in real estate she used the bulk of the funds for herself. Also, funds from subsequent investors were used to pay earlier investors.
Court upholds convictions of Madoff employees, USA Today, April 20, 2016
Petters Ponzi Scheme Victims To Receive $172M Under New Plan, CBS Minnesota, April 20, 2016
Real estate investor indicted on Ponzi scheme charges, New Jersey Online, April 28, 2016