Former Elyria church leader sentenced for Ponzi scheme

[MatrixWatch]

I thought this article (http://blog.cleveland.com/metro/2007/05/former_elyria_church_leader_se.html) would interest some of our members interested CEP...


A former Elyria church leader who stole millions of dollars from people he worshipped with was sentenced to more than five years in prison Tuesday.

Prosecutors and several of those church members asked U.S. District Court Judge Dan Aaron Polster to give Gary McNaughton a long prison sentence.

"This devastated a lot of people's lives," Assistant U.S. Attorney Justin Roberts said. "It's a Ponzi scheme that used the imprimatur of Christianity or religious belief to get people's guards down."

McNaughton, 51, pleaded guilty to 10 counts of fraud and tax evasion. The former youth assistant at Church of the Open Door admitted in court that between 1999 and 2003, he sold $17 million worth of unlicensed securities and kept about $4.6 million for himself.

Most of the 200 people McNaughton scammed attended Church of the Open Door or were related to worshippers there, Roberts said.

McNaughton, a Canadian citizen, promised to pool investors' money to buy blue-chip stocks and stock options as part of a Canadian fund called Haven Equity.

In reality, McNaughton was operating a Ponzi scheme. Money from new investors was used to pay off old investors or investors who complained and threatened to contact law enforcement, prosecutors said.

McNaughton also used the money to support his lavish lifestyle, prosecutors said. He lived in a $350,000 house and owned boats, motor homes, Corvettes and Harley-Davidson motorcycles, according to court documents.

The scheme began to unravel in 2002, when some investors demanded their money. Checks that McNaughton claimed were from dividends bounced.


Interesting highlights:

A former Elyria church leader who stole millions of dollars from people he worshipped with was sentenced to more than five years in prison Tuesday.

"This devastated a lot of people's lives," Assistant U.S. Attorney Justin Roberts said. "It's a Ponzi scheme that used the imprimatur of Christianity or religious belief to get people's guards down."


The scheme began to unravel in 2002, when some investors demanded their money.

[mitrod3]

Wow.....one real nice guy there. :nono:

But, this may actually be counter productive as it makes Trevor look like a saint (compared to this guy) and C E P look like a well thought out and well run organization as for each and all the folks I know here that are involved payments have come out just as promised (with a minor blip now and again) with no bouncing checks as yet. Bascially the money has come just as promised. People could point to this article and say that C E P is not anything like it (which it apparently is not) as well as pointing to C E P's track record TO DATE along with Trevors attitude and low key life style. Some folks here have talked with him directly and come away with a very favorable impression as to his care and concern.....however valid or invalid that might be.

Some of the folks here involved with C E P are visiting this web site and reading through the issues presented here. I'll check with them to see how this all is shaking out for them.

I am still one solid skeptic about C E P but this actually makes them look good by comparison. My concern again is that this will give them reason to say that C E P and Trevor are nothing like this guy and his scamola.

[Webwatch]

Any Coloners too nervous to click on the link above better look away now.

A former Elyria church leader who stole millions of dollars from people he worshipped with was sentenced to more than five years in prison Tuesday.

Prosecutors and several of those church members asked U.S. District Court Judge Dan Aaron Polster to give Gary McNaughton a long prison sentence.

"This devastated a lot of people's lives," Assistant U.S. Attorney Justin Roberts said. "It's a Ponzi scheme that used the imprimatur of Christianity or religious belief to get people's guards down."

McNaughton, 51, pleaded guilty to 10 counts of fraud and tax evasion. The former youth assistant at Church of the Open Door admitted in court that between 1999 and 2003, he sold $17 million worth of unlicensed securities and kept about $4.6 million for himself.

Most of the 200 people McNaughton scammed attended Church of the Open Door or were related to worshippers there, Roberts said.

McNaughton, a Canadian citizen, promised to pool investors' money to buy blue-chip stocks and stock options as part of a Canadian fund called Haven Equity.

In reality, McNaughton was operating a Ponzi scheme. Money from new investors was used to pay off old investors or investors who complained and threatened to contact law enforcement, prosecutors said.

McNaughton also used the money to support his lavish lifestyle, prosecutors said. He lived in a $350,000 house and owned boats, motor homes, Corvettes and Harley-Davidson motorcycles, according to court documents.

The scheme began to unravel in 2002, when some investors demanded their money. Checks that McNaughton claimed were from dividends bounced.
Not much forgiveness in that Church, funny how religious teachings takes a backseat when loss of cash is involved.

This one ran for around 3 years as well, seems The Church of the Open Door became The Church of the Empty Pocket.

This one would also have had to pay out many early members huge rewards in order for it to last so long.

For those wondering how God could to this to her flock the simple answer is- She didn't McNaughton did.

[concerned]

Wow.....one real nice guy there. :nono:

But, this may actually be counter productive as it makes Trevor look like a saint (compared to this guy) and C E P look like a well thought out and well run organization as for each and all the folks I know here that are involved payments have come out just as promised (with a minor blip now and again) with no bouncing checks as yet. Bascially the money has come just as promised. People could point to this article and say that C E P is not anything like it (which it apparently is not) as well as pointing to C E P's track record TO DATE along with Trevors attitude and low key life style. Some folks here have talked with him directly and come away with a very favorable impression as to his care and concern.....however valid or invalid that might be.

Some of the folks here involved with C E P are visiting this web site and reading through the issues presented here. I'll check with them to see how this all is shaking out for them.

I am still one solid skeptic about C E P but this actually makes them look good by comparison. My concern again is that this will give them reason to say that C E P and Trevor are nothing like this guy and his scamola.

I don't think it makes CEP look better. It makes them more questionable, because all this time, people are thinking that it is good ONLY cause it is faith based. If they are smart enough, and not too brainwashed yet, they will see that these 2 programs are identical in characteristics. I wouldn't worry about people thinking CEP is better, because the only people that would think that probably will "die on the cross" for CEP, and therefore will get scammed no matter what happens.

Heck, I wouldn't be too supprised if Trevor ended up being Gary McNaughton. Maybe that's why he can't respond on the forums. He might be dealing with another one of his scams.