California Art Dealers Charged With $3.4 Million Ponzi Scheme

Two California antique art dealers were arrested and charged with operating a Ponzi scheme that took in more than $3 million from investors.  Anthony Barreiro, 64, and Ernest Ray Parker, aka Ray Parker Gaylord, 50, were each charged with 12 counts of conspiracy, mail fraud and wire fraud.  As each of the charges carries a maximum twenty-year prison, the pair potentially faces hundreds of years in prison.  

Barreiro and Parker operated Charles Gaylord & Co. ("Charles Gaylord"), an antique business, and ARTLoan Financial Inc. ("ARTLoan").  The pair allegedly solicited investments for ARTLoan, telling potential investors that their funds would be used to provide lending capital to borrowers seeking to finance expensive artwork.  Investors were promised regular interest payments over the life of their loan, and were assured that ARTLoan would maintain possession of the encumbered artwork as collateral.  In the event of default, ARTLoan would purportedly have the right to forfeit the artwork for the benefit of investors.  In total, the pair raised more than $3 million from investors.

However, according to authorities, these representations were false, and ARTLoan did not use investor funds to finance the purchase of artwork nor did the company secure artwork as collateral in connection with the alleged loans.  Instead, the pair is accused of operating a Ponzi scheme by using investor funds to make the purported interest payments, thus giving off the appearance of a successful venture.  During the duration of the scheme, nearly $2 million in Ponzi payments were made to investors.  

Both Barreiro and Parker posted bond and are scheduled to next appear on February 11, 2014.  

Florida Accountant Arrested in Suspected $6 Million Ponzi Scheme

Florida authorities arrested a Pinellas county man suspected of masterminding a $6 million real estate development Ponzi scheme.  David George Dreslin, 54, was arrested yesterday by the Florida Department of Law Enforcement on charges of racketeering, conspiracy to engage in a pattern of racketeering activity, three counts of sale of an unregistered security, three counts of sale of a security by an unregistered dealer, securities fraud and organized fraud.  Dreslin turned himself in to authorities and is currently being held on a $920,000 bond.

Dreslin was the principal of Dreslin Financial Services, where he acted as a certified public accountant and business advisor.  According to authorities, Dreslin began soliciting investors for various real estate projects in which he promised substantial returns in a short period of time.  Investors were assured that their investment would be a safe and secure investment, and some investors entrusted Dreslin with retirement funds.  In return, investors were provided with periodic account statements depicting their account performance.  

However, authorities allege that Dreslin's venture was nothing more than a Ponzi scheme that depended on the continuing flow of new investor funds to pay distributions to existing investors.  Officials from FDLE discovered that Dreslin did now have ownership over all of the real estate he pitched to clients, and also diverted their investments to himself or for other unauthorized purposes.  In total, authorities believe at least $6 million of investor funds were lost.

According to the press release distributed by FDLE, additional arrests are expected.  

Those seeking further information may contact:

Gretl Plessinger, Samantha Andrews or Steve Arthur

FDLE Office of Public Information

(850) 410-7001 

California Pastor Accused Of $4 Million Ponzi Scheme

Authorities have arrested a California pastor on charges that he conducted a foreign currency Ponzi scheme that defrauded more than seventy Spanish-speaking victims out of nearly $4 million.  Luis Alonso Serna, 61, was charged with two counts of mail fraud, two counts of wire fraud and two counts of money laundering.  Each of the mail fraud and wire fraud charges carries a maximum twenty-year prison sentence, while each money laundering charge carries a ten-year sentence. 

Serna served as pastor of the Zion Living Word Christian Center in San Fernando.  In addition to his position as pastor, Serna allegedly held himself out as an experienced foreign currency investor through his company, Architects of the Future Investments.  Serna told potential investors that their funds would be used to purchase foreign currency, and promised investors monthly returns of up to twenty percent.  In total, investors entrusted more than $7 million with Serna - of which nearly $4 million is alleged to have been lost.

However, according to authorities, Serna operated a Ponzi scheme in which he used new investor funds to pay fictitious returns to existing investors.  The scheme collapsed when Serna was unable to satisfy monthly obligations to investors - which may have been difficult to sustain with Serna offering annual uncompounded returns of 240%.

Ponzi Schemes Now Illegal In Kazakhstan

The President of Kazakhstan has signed a law criminalizing Ponzi schemes and significantly toughening the penalties for those involved with Ponzi schemes.  President Nursultan Nazarbayev signed the law, which amended Kazakhstan's criminal code by allowing the imposition of prison terms for those convicted of organizing Ponzi schemes.  The new law is a reaction to the proliferation of Ponzi schemes in Kazakhstan, with the Kazakhstan General Prosecutor's office reporting a total of 61 criminal cases related to Ponzi schemes from 2010 to 2013.  

The previous Kazakhstan criminal code did not contain a definition for a Ponzi scheme, and thus individuals suspected of Ponzi schemes could not be prosecuted for the Ponzi scheme itself, but instead ancillary crimes such as fraud or tax evasion.  

According to a draft of the newly-enacted Article 224 circulated in January 2013, individuals accused of organizing or heading Ponzi schemes can face fines based on a monthly calculated index, correctional community work, or even imprisonment for three years with the possibility that their property could be confiscated.  The term of imprisonment can rise to a seven-year term when groups of individuals are involved in a Ponzi scheme, with certain enhancements allowing a further increase in the sentence, including when the scheme involved the deposits of large amounts of money from victims.