Beverly Hills Telemarketer, 65, Sentenced To 12 Years

May 20, 2008

  1. GreenSky
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    Beverly Hills Telemarketer, 65, Sentenced To 12 Years - KNBC-TV - MSNBC.com

    LOS ANGELES - A Beverly Hills telemarketer who sold fraudulent investments primarily to elderly victims will spend 12 and a half years in federal prison, prosecutors announced Tuesday. Alan David Libman, 65, whose sentence was handed down Monday by U.S. District Judge Dale Fischer in downtown Los Angeles, pleaded guilty last September to mail fraud and money laundering charges.

    Libman ran a Beverly Hills-based company called Investment Strategies, which purported to offer short-term investments in art, coins and other collectible items, such as U.S. presidential memorabilia and historic documents, said U.S. Attorney's Office spokesman Thom Mrozek.

    Libman falsely promised his investors that he would produce returns of 20 percent to 30 percent over the course of 90 days -- and suggested that they could reap larger returns with larger investments, according to court papers. Libman also offered to keep custody of the items, which he said would help facilitate their resale, prosecutors said.

    In reality, Libman collected about $5.5 million from investors between 1994 and 2004 -- and spent only about $100,000 on collectibles, according to court documents. Instead, he used most of his ill-gotten gains to fund a lavish lifestyle and mail a small number of payments to investors as part of his Ponzi scheme, according to the government.

    Prosecutors said Libman ran various bogus companies over a 10-year period and that more than $20 million moved through his bank accounts during that time.

    One elderly victim -- a man in his 80s -- lost about $980,000 to Libman, who once offered him a bracelet that the late baseball legend Joe DiMaggio supposedly gave to Marilyn Monroe, Mrozek said.

    Libman eventually sold the bracelet to a different man for $90,000, Mrozek said. When that victim had the bracelet appraised, he discovered it was only worth $6,000, Mrozek said.
     
    GreenSky, May 20, 2008
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  2. The Rabbi
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    When I have some time I'll dream up the reason for this posting.
     
  3. GreenSky
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    You mean my post or the bullshit you just posted after it?

    Rick
     
    Last edited: May 21, 2008
    GreenSky, May 20, 2008
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  4. KOBRFL
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    There are so many scams out there many coming from what seem like honest business people, as an agent you need to beware and check out anything promising returns above what is normal. I have recently seen a couple interesting ones involving premium financing and using a non registered high yeilding investment to pay premiums.
     
    KOBRFL, May 21, 2008
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  5. arnguy
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    You think that guy was bad? How about Lou Pearlman, founder of The Backstreet Boys and NSYNC. He was sentenced to 25 years today in Federal court (the maximum) for a $300 million scheme. It was over 10 years and was similar to a Ponzi scheme.
     
    arnguy, May 21, 2008
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  6. insurance0707
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    What the heck took so long to catch this guy. He did it for 10 years and only gave back $100,000 in that period. You think they would have caught him before that. On the lighter side, WOW, what telemarketing skills!
     
  7. Charpress
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    I have a close friend who dropped $875,000 in one of these scams. Now, he is a very successful insurance guy and smart as can be. Yet he was sucked into an investment scheme that also caused his divorce.

    The little lady warned him over and over not to trust the guy, but he knew better. If he had even Googled the guy's name he would have seen he had about 12 aliases around the world and that he had recently been released from prison.

    Just Google Ruuska and scam together.

    Now, I have tied insurance and the original post together. Are we all happy? :D