California Investment Fraud Masterminds Guidi and Armitage Arrested
Investors in Sonoma County are relieved at the arrest of Gary Armitage and Jeff Guidi for securities fraud.
The two were recently arrested and have been charged with multiple counts of securities fraud and residential burglary. The residential burglary charges relate to the fact that the two entered people's homes while selling their schemes. Armitage and Guidi ran AGA Financial, an investment company in Santa Rosa. Their Ponzi scheme swindled an estimated $200 million from thousands of people before it fell apart. The duo's business partner, James Koenig, was also arrested on similar charges. If they are convicted, the three could each spend 100 years in prison.
According to Attorney General Jerry Brown, the three used investor money to bankroll their lavish lifestyle, including luxury residences, expensive cars, and a Lear jet. Most of the investors were retirees who Armitage and Guidi coaxed into investing their life savings.
According to the AG's office, the three men established a network of 55 businesses to keep their Ponzi scheme going. In 1997, the three began selling real estate projects, promising investors they were secure low risk investments with returns of 12 percent or more. Investment planning seminars were held across the state,and investors handed over sums ranging from between $50,000 and $1 million. Some people actually invested their entire savings accounts funds and retirement portfolios.
In 2001, the three redirected investor funds into purchasing more than 20 senior care facilities. Each of them were sold to one of the affiliate companies, which would then sell shares in the property at a high price to new investors. Another affiliate company in the network would manage the property to increase revenues. Any revenues were used to pay interest to investors and keep the scheme afloat. The scheme began to unravel when the defendants could not keep up with interest payments to investors. That did not stop Armitage and Koenig from seeking investors, however. They continued to attract new investors using new investment funds to pay off earlier investors who were beginning to get worried.
With frauds tumbling out of the closet at an alarming rate, it looks like securities attorneys will be busy for a while to come.
According to authorities, the investment fraud affected investors across the country. Next week, Hsu faces another trial for campaign finance fraud. According to prosecutors, his contributions to politicians allowed him access into influential political circles, and he used these connections to impress potential investors. At least one of his fraud victims is due to testify that Hsu played a voice mail message by a political candidate to impress her into investing with him. Hsu is facing charges that he had “straw donors“ contribute to federal candidates. These donors were then reimbursed..jpg)
To placate investors, Hudgins sent them false account statements, reflecting profits. He reportedly paid older investors approximately $17 million from money solicited from newer investors in his scheme. According to court records, the remainder of the money was used for lavish personal expenses, including an antique sports car collection, jewelry, and an airplane.
According to investigators, Copeland began soliciting investors about 10 years after he began practicing as an attorney. He promised investors that their funds would be used as short term loans for real estate investment. He told them that when he was able to sell the properties, he would be able to pay them returns as high as 15 to 18 percent. Copeland operated a firm called Advance Asset Strategies, assuring investors in his brochure that ”your loan is secured by the actual property that the real estate investor purchases”. 
In most cases, Ponzi fraudsters use investor money partly to fund their lavish lifestyles, while the rest is used to pay off early investors and keep the scheme afloat. The recklessness with which fraudsters squander investor money is a common feature of many of the Ponzi schemes that have been exposed. .jpg)
According to the SEC lawsuit, as much as $3.5 million was spent on lavish personal expenses, including a down payment on a $1.9 million home. She also threw a grand party to celebrate the company’s "success" at the Ritz Carlton in Marina Del Ray, which unsuspecting investors paid for. Of the $23 million, approximately $13 million was spent making interest payments to investors while more than $5 million was lost in speculative investments. There is no information yet on whether there is a criminal investigation into Flores' actions. The SEC lawsuit is seeking restitution and penalties.
The SEC’s shortcomings were glaringly evident in the way Bernard Madoff managed to operate his 
Needless to say, the investments went neither into initial public offerings or trading firms. Instead, Regensberg invested in speculative investments, losing large portions of investor money in the process. Large sums of money also found their way into the hands of his relatives.
For Greenwood and Walsh, the trouble began in February when their firms were subjected to an audit by the National Futures Association. They refused to cooperate and were suspended from the organization. Since then, the two have been the subject of several .jpg)
It's the first formal statement we’ve heard from the man at the center of the 
Drier's scheme involved the selling of at least 85 fake promissory notes that were said to pay an interest of 11.5 percent. He is charged with selling fake promissory notes to three separate investors and 13 hedge funds between 2004 and 2008. Most of the money went to fund Dreier's extravagant lifestyle, while some went to fund his law firm operations and pay returns to early investors, in a classic 
Friehling was not charged for knowledge of the 
Prosecutors also plan to seize assets in Ruth Madoff's name including: $17 million cash and $45 million in bonds. The Madoffs' lawyers insist Ruth is the sole owner of the cash, bonds and Manhattan apartment and that they are not related to her husbands $65 billion Ponzi scheme. In addition, loans given to the Madoffs' sons, Mark and Andrew, adding up to nearly $32 million are on the list of assets to be seized.
Earlier in the week Madoff refused to agree to a plea deal with prosecutors and admit to conspiracy, implicating others. Because of his refusal investigators will have no help in identifying others involved in the scheme. According to 
Guiana Island is Antigua's largest island measuring 2.5 miles across and .5 miles wide. With extensive mangroves, coral reefs and wildlife it is one of Antigua's ecological treasures. It is home to Antigua's national animal, the European fallow deer, and the endangered West Indian whistling duck.
According to the SEC, on a monthly basis, Stanford and Davis came up with a set return on Stanford International Bank investments and worked backward from there, falsifying financial documents to support their deception.
At least 300 investors with their 
Florida has been hit particularly hard in the recent series of investment fraud scandals that have come to light. The victims of 
According to insiders, nearly half of all .jpg)
In September of 2007 BCI and their CEO, Cooper, began taking advantage of naive investors by giving presentations and seminars at Deaf Community centers and events. The fraudster ultimately collected $4.4 million from 125 investors and, rather than investing the money, bought himself a new home, among other things.
It is one of the oldest investment fraud schemes, and its low risk, high yield mantra has helped it become one of the most successful forms of investment fraud. A Ponzi scheme works similarly to a pyramid scheme. Here, the fraudster collects funds from investors, and uses them to pay off previous investors. As long as the number of investors is limited and there is enough money to pay off previous investors, Ponzi scheme fraudsters have little risk of getting caught. However, when funds begin to dry up, older clients cannot be paid as quickly, which is when the scheme begins to crumble. The financial meltdown that went into full gear a few months ago resulted in a credit crunch, which meant that Ponzi scheme fraudsters like Bernie Madoff and Ralph Russell were unable to continue making payments to earlier investors and keep the fraud alive. That is why there have been a large number of Ponzi scams uncovered since the meltdown began. These fraudsters are able to survive well in times of a booming economy, but as soon as the economy falls, their schemes are busted.
scandal was a flash in the pan and that few other Ponzi schemes and 