growing_older
Thinks s/he gets paid by the post
- Joined
- Jun 30, 2007
- Messages
- 2,657
I was approached by a ponzi scheme a couple years ago, and it was rather crude and obviously an unwise arrangement, yet apparently they landed about $10 million in "investments" from people taken in.
Lawrence "Lee" Loomis Ponzi Scheme Halted by SEC - Boston Accident Injury Lawyer
The notion was that they would invest in bulk rental property bought from distressed developers, then rent them out. The "investors" would personally sign for the mortgage, but payments would supposedly be made from the rental income. Surplus would accumulate in the secret investment account (mandatory participation) that was run by his father in law, and would show great paper gains on the "investment" but could not be accessed for many years.
I suspect that people who were taken in not only lost their entire investment when it was revealed that the secret account was not actually being invested, but being spent by insiders. They were also still holding mortgage debt on distressed property, just in time for real estate prices to drop.
Lawrence "Lee" Loomis Ponzi Scheme Halted by SEC - Boston Accident Injury Lawyer
The notion was that they would invest in bulk rental property bought from distressed developers, then rent them out. The "investors" would personally sign for the mortgage, but payments would supposedly be made from the rental income. Surplus would accumulate in the secret investment account (mandatory participation) that was run by his father in law, and would show great paper gains on the "investment" but could not be accessed for many years.
I suspect that people who were taken in not only lost their entire investment when it was revealed that the secret account was not actually being invested, but being spent by insiders. They were also still holding mortgage debt on distressed property, just in time for real estate prices to drop.