Monday, December 29, 2008

Yet Another Ponzi Scheme Busted - Salvadoran In California Defrauds Investors $62 Million

Milton Retana, 43, of Norwalk, California and an El Salvadoran national, was arrested Christmas morning on charges he orchestrated a Ponzi-type investment fraud scheme bilking more than 2,000 investors out of some $62 million, according to prosecutors. Retana's scheme involved luring investors to his Best Diamond Funding company which purportedly used profits from diamond sales to purchase and resell real estate and promised up to 84 percent returns. He targeted largely Hispanic investors, according to prosecutors. When authorities raided his wife's religious bookstore, they found in excess of $3 million in cash. Retana faces up to 65 years in prison on the fraud and false statements charges, plus restitution and fines.

Read the story here, here and here.

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