New Jersey Man Sentenced to Prison for $2.4 Million Ponzi Scheme

A former investment adviser was sentenced to nearly five years in prison for orchestrating a Ponzi scheme that swindled investors out of over $2 million.  Carlo Chiaese, 38, of Livingston, New Jersey, had previously pled guilty to one count of securities fraud before United States District Judge William J. Martini.  Securities fraud carries a maximum sentence of twenty years in prison and up to a $5 million fine.  

Chiaese, who had worked in the financial industry since at least 1999, operated an independent investment firm by the name of CGC Advisers, LLC.  From November 2008 to September 2010, Chiaese solicited clients by portraying the prospect of steady annual returns through a conservative investment strategy utilizing stocks and bonds.  In total, nearly $3 million was raised from investors, including approximately $1.7 million from a pension fund representing tugboat and ferry workers in New York and New Jersey.  To make the operation appear legitimate, investors were provided with account statements containing fictitious securities holdings.  Yet, instead of investing in securities, Chiaese used the majority of investor funds to sustain a glamorous lifestyle that consisted of high-end cars, expensive travel, and luxury fashion.  The remainder of funds were used to make transfers to family members and to make supposed interest payments to existing investors.

Judge Martini also ordered Chiaese to pay $2.5 million in restitution to swindled investors, and to serve three years of supervised release.  

Accused "Clubhouse Ponzi Schemer" Arrested in Thailand

A south Florida man accused of running a Ponzi scheme from his perch at a golf clubhouse bar has reportedly been arrested in Thailand.  A federal arrest warrant had been issued for Roger A. Miller, 58, who, according to the Orlando Sentinel, had held a press conference earlier this week claiming he was penniless and living in Thailand attempting to recover investors' money.  The federal warrant charged Miller with unlawful flight to avoid prosecution on two charges of grand theft currently pending in Broward County, Florida.  

As previously covered by Ponzitracker, nearly twenty investors filed suit against Miller alleging at least $2.2 million in damages.  According to the lawsuit, Miller was a frequent figure at the Oriole Golf Club in Margate, Florida, where he was known for his investing prowess.  Miller solicited investors with several purported opportunities, including residential housing in Thailand and hard money loans to individuals with poor credit. Several investors reported that Miller would often bring envelopes full of cash containing interest payments to the clubhouse.  However, it is now alleged that Miller did not use these funds to invest, and instead operated a Ponzi scheme.  Miller disappeared in early 2009 when the scheme is thought to have unraveled.  

According to the Orlando Sentinel, investors in Miller's scheme were defrauded of up to $5 million.  Miller has allegedly been living in Thailand since fleeing south Florida in early 2009.  It is unknown how long it will take to extradite Miller back to the United States.

Prison Sentence for Wine-Based Ponzi Scheme

A sales director of a wine-based investment program was sentenced by a British court to five years in prison after pleading guilty to charges that the program was a $45 million Ponzi scheme.  Richard Gunter pled guilty for his role in the scheme that promised investors large returns from making short-term investments in various spirits, including brandy, cognac, and wine.  Gunter's conviction is the third to date for former Vintage Hallmark employees.  

According to investigators at the Serious Fraud Office in England, Vintage Hallmark and the Hallmark Partnership solicited individuals in Canada and the United States to invest in fine wines and whiskeys.  A ten-month investment in champagne yielded 50%, while a three-month whisky investment yielded 110%. When these investments matured, investors were then persuaded to roll over these fictitious profits into further ventures secured by promissory notes.  In total, over 300 individuals invested thirty million pounds, which equates to over $45 million.  The scheme unraveled in 2003.

Gunter has already been convicted and sentenced in 2008 to nearly five years in prison for his role in a similar spirits-based scam.

Guilty Plea in Sacramento Ponzi Scheme

A California man entered a guilty plea to charges he operated an investment club Ponzi scheme that defrauded investors out of $2.2 million.  Garry Bradford, 62, of Sacramento, pled guilty to a single count of wire fraud in front of United States District Judge Garland E. Burrell, Jr.  Wire fraud carries a maximum prison sentence of twenty years along with a criminal monetary penalty of up to $250,000.

Bradford was the president of Millenium Capital Group, which solicited investments in land and construction-related ventures.  From 2003 to 2008, nearly $2.2 million was raised from twenty-one investors, some of whom refinanced their houses or used retirement funds to fund their investment.  However, instead of making real estate investments, Bradford used funds of new investors to make payments to existing investors, a hallmark of a Ponzi scheme.  The scheme unraveled in 2008 when Bradford was unable to meet payment obligations to investors.

Bradford is scheduled to be sentenced on April 6, 2012.  

Jury Convicts Texas Man of $50 Million Ponzi Scheme

A Texas man was convicted of orchestrating a $50 million Ponzi scheme whose victims included members of a church congregation and former professional football players.  Kurt Barton, 44, had faced thirty-nine criminal counts relating to his former tenure at the helm of Triton Financial, which prosecutors said was nothing more than a giant Ponzi scheme.  Barton faces decades in prison after being convicted of conspiracy, securities fraud, 15 counts of wire fraud, five counts of false statement related to a loan and 17 counts of money laundering.  

According to prosecutors, Barton took in more than $75 million from nearly 300 investors while operating Triton Financial.  Of that amount, only $20 million was spent on legitimate operations, while the remainder went to fund Barton's lavish lifestyle, fund business operations, and to make interest payments to existing investors.  Barton solicited investors that their funds would be used for a variety of purported legitimate business activities, including real estate investment and short-term business lending.  Barton also employed several former NFL players, including Ty Detmer and Chris Weinke, to promote the business to outside investors.  Several of those players also lost money with Barton.

United States District Judge Sam Sparks ordered Barton jailed despite pleas from his attorneys to remain free on bond until sentencing.  The United States Probation Department will prepare a sentencing report with a recommended sentence.  Sentencing is currently scheduled for November 4.  

A copy of the indictment is here.

The website of the Receiver appointed over Triton Financial is here.