July 20, 2011Northwest Suburban Man Sentenced to Six Years in Prison for Swindling $5 Million from 150 Victims in Investment Fraud Scheme
CHICAGO—A northwest suburban man was sentenced to six years in federal prison for engaging in an investment fraud scheme that swindled more than $5 million from approximately 150 victims who invested in funds he purported to operate. The defendant, Scott M. Ross, who pleaded guilty to mail fraud in March, was sentenced yesterday, Patrick J. Fitzgerald, United States Attorney for the Northern District of Illinois, and Robert D. Grant, Special Agent in Charge of the Chicago Office of the Federal Bureau of Investigation, announced today. Ross misused money he raised from investors for his own benefit, including salary and a stadium sky box, and to make Ponzi-type payments to certain customers who complained.
Ross raised approximately $1.9 million from about 25 investors in the Elucido Fund, which claimed to invest in life settlement contracts, described as the purchase of the right to receive death benefits upon the death of the insured on a life insurance policy. He raised approximately $3.1 million from approximately 134 investors in the Moondoggie Fund, which purported to invest in the stock of Moondoggie Technologies, Inc., and its reported development of a dual-sided computer monitor.
Ross caused more than 150 of these investors to lose more than $5 million they invested in the two funds by commingling the money he raised and misappropriating funds for his own use and benefit. He made fraudulent statements to investors about his business and investment background, the risks involved in the investments, the return on investment, the use of investors’ funds, and the status of investments.
As part of the fraud scheme, Ross falsely represented to certain investors that he was board certified in estate planning; was a certified fund specialist, and “had passed a comprehensive seven-year background review with all regulatory bodies, including the NASD, SEC, and all state insurance and securities boards.”
read more @ http://www.fbi.gov/chicago/press-releases/2011/northwest-suburban-man-sentenced-to-six-years-in-prison-for-swindling-5-million-from-150-victims-in-investment-fraud-scheme
__
Remember This One - Six Months Ago - Dinar is Mentioned ..
Read this ~Wow ~ Investment Scams Aren’t Leaving Utah in 2011 ...
And This ~ Whistle. Then Worry and Wait ... (Investment Fraud - Beware of the new "Global Groundbreaking, Money Making Opportunity of a Lifetime Scams) ...
And This ~ Investment Fraud ~ You've heard it many times before: If it sounds too good to be true, it probably is. Be Prepared-Be Aware ~ Don't become a Victim!
