John S. Dudley, 56, of Sandy, Utah, has been indicted on charges alleging he operated a Ponzi-type investment fraud scheme that defrauded investors out of at least $12 million. Dudley reportedly promised investors they he could earn them 5 to 10 percent per month on investments backed by a "senior life settlement policy," that included a "human jet-pack suit." Prosecutors allege that Dudley offered these fraudulent investments over a period of three plus years, from January 2007 until March 2010. Dudley further advised his clients to use "equity mining" to obtain cash to invest in his scheme - a strategy whereby one over-inflates assets to obtain credit in excess of the value of the asset. Dudley allegedly used investor funds to pay investors "returns" and to support a lavish lifestyle.
Read the story here and here.
Note: this is yet another major Ponzi scheme perpetrated in the State of Utah and was unfortunately, not included in the Marquet Report on Ponzi Schemes. The report identifies Utah as having one of the highest risk for Ponzi Schemes in the entire US. Many of these are affinity schemes targeting mormon investors.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment