ycchen
July 27th, 2005, 10:23 AM
This is a good example why you should make complaint to state SEC if you want your money back from a ponzi. :)
http://www.psc.state.pa.us/newsroom/index.html
Pennsylvania Securities Commission Breaks Pervasive Ponzi Scheme and Recovers Over $10.6 Million for Investors
HARRISBURG (Dec. 7, 2004) – Christmas is coming a little early this year to 96 Pennsylvania investors and 204 in other states and Australia in the form one of the largest asset recoveries -- $10.6 million -- ever made by a state securities regulator, the Pennsylvania Securities Commission announced today.
A. Richard Gerber, Commission Chairman, launched the refund today by presenting a ceremonial check to one of the Pennsylvania investors in Eagle Cash Management Account System and U.S. Estate Group, LLC. The presentation was made during a news briefing at state securities commission headquarter here. Actual checks will be mailed later in the week.
“It is extremely unusual for anyone to recover funds for investors in Ponzi schemes because the scam artists try as fast as they can to get the money beyond the reach of the law – often to offshore bank accounts.,” Chairman Gerber said. “In this case, we obtained nine cents on the dime in restitution to investors because of quick action on the part of the staff of the Pennsylvania Securities Commission and the Montgomery County bench.”
Chief Counsel Michael J. Byrne noted that the case represents a textbook example of how the Commission strives to protect investors. Commission staff, through its ongoing surveillance of media advertisements for investments, discovered an internet advertisement which offered the Eagle Program promising investors a 24 percent annual return. It sounded too good to be true, and it was, Byrne said.
The internet advertisement appealed to senior citizens by claiming that the Eagle Program was a great way to increase their income by supplementing their social security. It also appealed to families who wished to invest in the Eagle Program to provide for college educations.
When alerted, the Commission immediately issued a Summary Order to Cease and Desist to halt continuation of the Program and alert Pennsylvania citizens to its risks. As a result of the cooperation of a Montgomery County bank in expediting production of bank records, the Commission learned the investigation revealed that in excess of $6 million was on deposit in the Montgomery County bank. The Commission authorized staff to seek an immediate injunction to seize the funds and appoint a trustee in Montgomery County Court of Common Pleas.
Judge William T. Nicholas immediately issued an order to freeze the funds and on February 14, 2000, Judge Calvin S. Drayer, Jr., appointed Frederic M. Wentz, Esq., as trustee.
The Commission located an additional $4 million and negotiated its return to investors. Thereafter, staff of the Commission pursued commissioned sales agents for Eagle Cash to disgorge commissions which had been illegally paid to them.
Nicholas Yoder, an investor from Christiana, Pennsylvania, received his check which accomplished the return of almost $70,000 out of the $75,000 he invested. Trustee Fred Wentz said the remaining checks will be mailed to the investors this week. A majority of the Pennsylvania victims – more than 50 – are from Lancaster County. Others are from Allegheny, Bucks, Chester, Dauphin, Delaware, Lehigh, Lebanon and Montgomery Counties. Besides Pennsylvania, the largest groups of investors are located in Delaware, Florida and New Jersey.
In a letter to all investors, Wentz noted, “It is highly unusual that a victim of a Ponzi scheme ever receives any money back from the scam. Thanks to the Pennsylvania Securities Commission, you will have received over 91 percent of your net investment.”
In a Ponzi scheme, proceeds received from new investors are used intentionally to pay back early buyers in an attempt to conceal the fact that the enterprise is either losing money or never intended to earn income from capital investment, manufacturing, sales or services.
This case represents the culmination of years of activity by the legislature, the Governor, and the Pennsylvania Securities Commission to strengthen the tools available to the Commission to protect investors.
# # # #
Alternate formats of this release may be available on request; call 717/787-1165.
http://www.psc.state.pa.us/newsroom/index.html
Pennsylvania Securities Commission Breaks Pervasive Ponzi Scheme and Recovers Over $10.6 Million for Investors
HARRISBURG (Dec. 7, 2004) – Christmas is coming a little early this year to 96 Pennsylvania investors and 204 in other states and Australia in the form one of the largest asset recoveries -- $10.6 million -- ever made by a state securities regulator, the Pennsylvania Securities Commission announced today.
A. Richard Gerber, Commission Chairman, launched the refund today by presenting a ceremonial check to one of the Pennsylvania investors in Eagle Cash Management Account System and U.S. Estate Group, LLC. The presentation was made during a news briefing at state securities commission headquarter here. Actual checks will be mailed later in the week.
“It is extremely unusual for anyone to recover funds for investors in Ponzi schemes because the scam artists try as fast as they can to get the money beyond the reach of the law – often to offshore bank accounts.,” Chairman Gerber said. “In this case, we obtained nine cents on the dime in restitution to investors because of quick action on the part of the staff of the Pennsylvania Securities Commission and the Montgomery County bench.”
Chief Counsel Michael J. Byrne noted that the case represents a textbook example of how the Commission strives to protect investors. Commission staff, through its ongoing surveillance of media advertisements for investments, discovered an internet advertisement which offered the Eagle Program promising investors a 24 percent annual return. It sounded too good to be true, and it was, Byrne said.
The internet advertisement appealed to senior citizens by claiming that the Eagle Program was a great way to increase their income by supplementing their social security. It also appealed to families who wished to invest in the Eagle Program to provide for college educations.
When alerted, the Commission immediately issued a Summary Order to Cease and Desist to halt continuation of the Program and alert Pennsylvania citizens to its risks. As a result of the cooperation of a Montgomery County bank in expediting production of bank records, the Commission learned the investigation revealed that in excess of $6 million was on deposit in the Montgomery County bank. The Commission authorized staff to seek an immediate injunction to seize the funds and appoint a trustee in Montgomery County Court of Common Pleas.
Judge William T. Nicholas immediately issued an order to freeze the funds and on February 14, 2000, Judge Calvin S. Drayer, Jr., appointed Frederic M. Wentz, Esq., as trustee.
The Commission located an additional $4 million and negotiated its return to investors. Thereafter, staff of the Commission pursued commissioned sales agents for Eagle Cash to disgorge commissions which had been illegally paid to them.
Nicholas Yoder, an investor from Christiana, Pennsylvania, received his check which accomplished the return of almost $70,000 out of the $75,000 he invested. Trustee Fred Wentz said the remaining checks will be mailed to the investors this week. A majority of the Pennsylvania victims – more than 50 – are from Lancaster County. Others are from Allegheny, Bucks, Chester, Dauphin, Delaware, Lehigh, Lebanon and Montgomery Counties. Besides Pennsylvania, the largest groups of investors are located in Delaware, Florida and New Jersey.
In a letter to all investors, Wentz noted, “It is highly unusual that a victim of a Ponzi scheme ever receives any money back from the scam. Thanks to the Pennsylvania Securities Commission, you will have received over 91 percent of your net investment.”
In a Ponzi scheme, proceeds received from new investors are used intentionally to pay back early buyers in an attempt to conceal the fact that the enterprise is either losing money or never intended to earn income from capital investment, manufacturing, sales or services.
This case represents the culmination of years of activity by the legislature, the Governor, and the Pennsylvania Securities Commission to strengthen the tools available to the Commission to protect investors.
# # # #
Alternate formats of this release may be available on request; call 717/787-1165.