SEC Pursues Ponzi Scheme Targeting Haitian-AmericansJohn Pacenti 12-31-2008
While there's been much focus on the rich of Palm Beach, Fla., who became victims of an alleged $50 billion scam wrought by Wall Street fund manager Bernard Madoff <http://www.law.com/jsp/article.jsp?id=1202426787915>, federal securities investigators have quietly moved on another Ponzi scheme in South Florida, much smaller in scope but similarly devastating. While Madoff allegedly targeted well-to-do Jews, George Theodule and family members aimed for the pockets of Haitian-Americans in South Florida, according to the Securities and Exchange Commission, which filed a complaint (pdf) <http://www.sec.gov/litigation/complaints/2008/comp20840.pdf> against him and two of his companies Monday. U.S. District Judge Donald Middlebrooks on Monday granted a temporary restraining order requested by the commission. He froze 25 of Theodule's accounts in three banks and appointed attorney Jonathan E. Perlman of Genovese Joblove & Battista in Miami as receiver to locate and retrieve victim assets. Theodule, who is accused of promising investors 100 percent returns within three months, also is named as a defendant in a proposed class action lawsuit filed in West Palm Beach federal court on Friday. Attorneys for the investors say Theodule's network branched out across several states. "This is almost the exact opposite of Madoff," said Jared Levy, an attorney representing investors in the lawsuit<http://www.dkrpa.com/Bio/JaredLevy.asp>. "His investors were the most sophisticated, wealthiest people and institutions. This defendant went the opposite way. He preyed on people with little investment experience and few assets, but most investors provided their entire life savings, whether it was $5,000, $10,000 or $20,000." Levy, who runs the West Palm Beach office of Dimond Kaplan & Rothstein<http://www.dkrpa.com/>, said Theodule or his employees would only accept cash for investments. No checks. No money orders. He said the law firm is still compiling the damage to investors nationwide but estimates the losses could exceed $100 million when all are tallied. Besides Florida, Theodule is alleged to have worked a scam in Georgia, New Jersey, New York, California, Texas, Massachusetts and Nevada, Levy said. More than half of the investors reside in Florida, according to the lawsuit. Judge Middlebrooks set a Friday hearing to allow Theodule to address why a preliminary injunction should not be issued against him. -- "I'm selfish, impatient, and a little insecure. I make mistakes, I am out of control, and at times hard to handle, but if you can't handle me at my worst, then you sure as hell don't deserve me at my best." ~Marilyn Monroe --~--~---------~--~----~------------~-------~--~----~ You received this message because you are subscribed to the Google Groups "Black Focus Inc." group. To post to this group, send email to [email protected] To unsubscribe from this group, send email to [email protected] For more options, visit this group at http://groups.google.com/group/Black-Focus-Inc?hl=en -~----------~----~----~----~------~----~------~--~---
