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  1. #1
    Join Date
    Oct 2006
    Posts
    11

    $69 Million Ponzi Scheme

    HEAD OF PURPORTED REAL ESTATE INVESTMENT FUND INDICTED IN $69 MILLION PONZI SCHEME; MAKES FIRST APPEARANCE IN COURT
    Defendant Gene O'Neal Guaranteed A 25% Return On Investment In 60 Days
    Atlanta, GA - GENE A. O'NEAL, 36, of Atlanta, Georgia, made an initial appearance today before a United States Magistrate Judge on federal charges of mail and wire fraud. O’NEAL allegedly ran a scheme that defrauded investors in Pinnacle Development Partners, LLC ("Pinnacle"), a purported real estate investment fund based in Atlanta. O’NEAL was indicted by a federal grand jury on the charges earlier this week.

    "O’Neal’s promises of huge returns in a short period opened the floodgates to investment," said United States Attorney David E. Nahmias. "He allegedly raised more than $69 million in 15 months by making promises of exorbitant returns from the purchase, improvement and sale of real estate. He then used the capital contributions of later investors to pay the returns promised to earlier investors. Contrary to what he told his investors, O'Neal allegedly did not realize the hefty returns he guaranteed but rather continued to draw in everincreasing amounts of investment from other investors and therefore ever-increasing amounts of unsustainable but undisclosed debt."

    FBI Special Agent In Charge Greg Jones said, " This case not only demonstrates that the FBI is well suited to pursue such cases of large scale fraudulent investments or ponzi schemes, with their victims scattered over many states, it also demonstrates that we are committed to such a pursuit. The economic losses sustained by the victims of such schemes reverberates throughout our community in many ways. We hope that this investigation and the resulting indictment will serve notice to others contemplating any similar type financial schemes."
    for rest of story, here is the link:
    http://atlanta.fbi.gov/dojpressrel/p...heme030807.htm

  2. #2
    Join Date
    Sep 2006
    Posts
    63

    Pinnacle Ponzi Scheme

    Pinnacle was a high-profile Ponzi fraud in the USA, mainly because they blatantly took out ads in the Wall Street Journal and other reputable publications. It was unmasked in part because of the Fraud Discovery Institute www.frauddiscovery.net in San Diego run by Barry Minkow. Minkow prepared a report to the FBI and SEC which helped expose it. His report can be found online at http://www.webmechanic.com.au/IFFL/FDI_Pinnacle.pdf .
    Barry Minkow has exposed more frauds than anyone in US history. He commissioned a report on Merendon Mining as well, which is one of the Institute for Financial Learning’s scams (see IFFL scam threads also).
    http://www.webmechanic.com.au/IFFL/Abbott%20report1.pdf

    Winnipeg Worrier

  3. #3
    Join Date
    Oct 2005
    Posts
    134

    Re: $69 Million Ponzi Scheme

    Yeh this guy gets taken down but look at Refco, we talking billions there and they got off through bankruptcy.
    They still owe me money ill probably never see my funds put in there bank to be withdrawn only for trading purposes and it automatically became theres when they declare bankruptcy?
    Where Barry Minkow for the Refco losers?
    Im coming over with the stolen Karaoke machine.:rain:
    Do you want somebody to love do you need somebody to love.:rasta:

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