Top 10 Ponzi schemes of 2013

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CA Mayur Joshi
CA Mayur Joshi
CA Mayur Joshi is a Forensic Accounting evangelist in India. He is the co-founder of Indiaforensic and is author of 7 books on forensic accounting, fraud investigations and money laundering.

ponzi schemesAccording to the  data of Securities Exchange Commission on Ponzi schemes, US investors have lost nearly $441 Million against $1488 million in 2012 to Ponzi schemes in USA. Here are the top 8 ponzi schemes according to the amount quantified by Securities Exchange Commission website. The losses have reduced as compared to the losses in the year 2012.

Name of Ponzi Player Loss in Million Dollars Summary of the Scheme Destination
Cay Clubs Resorts and Marinas 300 Five former executives were charged with defrauding investors into believing they were funding the development of five-star destination resorts in Florida and Las Vegas when they were actually buying into a $300 million Ponzi scheme. Florida
Trendon T. Shavers 60 Trendon and his company Bitcoin Savings and Trust {BTCST} were charged with defrauding investors in a Ponzi scheme involving Bitcoin Texas
Walter Ng, Kelly Ng, and Bruce Horwitz 39 Bay Area real estate fund managers were charged with operating a Ponzi-like scheme in which they solicited and secretly used assets of a new real estate fund to make payouts to investors in an older, rapidly collapsing fund. Bay Area
Mark Morrow and Detroit Memorial Partners 23 Mark and his company issued approximately $19 million in fraudulent promissory notes and selling $4.5 million in equity interests through an investment advisory company that operated as a massive Ponzi scheme. Cincinati
Duncan MacDonald and Gloria Solomon 10 Duncan and Gloria, two executives at a medical insurance company were charged with operating a $10 million Ponzi scheme that victimized at least 80 investors by falsely promoting their start-up venture as a thriving business. Dallas
John K. Marcum – 6 John Marcum falsely touted himself as a successful trader and asset manager to raise more than $6 million from investors. He squandered the money on personal luxuries and other ventures such as a reality TV show, and continued soliciting money from new investors to pay earlier investors’ redemption requests. Indiana
Alvin R. Brown and First Choice Investment 3 The scheme was shut down that targeted seniors, including an elderly investor suffering from a stroke and dementia, by falsely promising high profits from commercial and residential rental properties in California and other Western states. California

Author: Mayur Joshi

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