Two More Hedge Fund Ponzi Schemes

[Freddie]

A guy named Arthur Nadel in Sarasota, FL is missing. He supposedly had $350 million under management. Another guy in Idaho named Daren Palmer may have stolen up to $100 million.

Unreal. I wonder how many more will turn up.

 

[CPACINS]

Hopefully they are caught and placed in very dark, cold prison for 25+yrs

 

[Freddie]

The federal government is nothing but a big ponzi scheme. If they are ever cut off from the easy money there is no way they can meet their obligations.

</IMG>

I heard something or read something where this time it is different for California. In the past, they could sell more bonds or try some tricks to roll over the debt. Supposedly those days are over.

I am not sure if it is because the credit markets are making it almost impossible to see more bonds or what. They have avoided cutting programs for so long that only drastic cuts will even make a dent.

My guess is they will all line up after the 20th for their "bailout." Loads of cities including Atlanta, Chicago and San Jose have their hand out as well. Sickening.

 

[arnguy]

Yesterday in Philly a federal judge sentenced a guy named Edward Ronald Schnable. Jr. to 8 years for selling "prommisory notes" due in a year or two that guaranteed a return of 10 to 14 percent return. He was able to keep this Ponzi scheme running from 1995 through 2003. Just a week ago federal authorities filed a civil suit against a guy named Joihn Forte who was a "money manager" in suburban Philly. This guy was unlicensed and "managed" to make 15 million in assets under his control disappear. This kind of stuff goes on and on partly fueled by the greed of the investors.

 

[Guest]

I agree with Jim, the Fed has kettle-pot/fryingpan-fire syndrome. This stuff should be regulated by the states.

 

[bluemarlin08]

I knew a guy that did a ponzi type scheme in the Knoxville area, everything began to unravel, he went to a local funeral home, planned and paid for a funeral, went to his car and ended his life.
Some of his clients were the wealthiest families in east Tenn.

 

[SportsNut]

Therein saving the State of TN inordinate amounts of money for a prosecution and years of incarceration costs. There was some upside.

If only more criminals were so considerate.

 

[Freddie]

I knew a guy that did a ponzi type scheme in the Knoxville area, everything began to unravel, he went to a local funeral home, planned and paid for a funeral, went to his car and ended his life.
Some of his clients were the wealthiest families in east Tenn.

I think I heard about this story. Did he work for a well known broker dealer that pushes mutual funds and is HQ in St. Louis?

 

[djs]

I agree with Jim, the Fed has kettle-pot/fryingpan-fire syndrome. This stuff should be regulated by the states.

Truthfully, it would be worse if the states regulated it. Face it, the problem isn't who regulates it, the problem is who enforces it. No matter what, criminals will be criminals.

It amazes me the commercials I hear for gold nowadays. Obviously pretty unregulated. These commercials make me realize why people should ask more questions.... Nothing wrong with gold, just the way some people market it as an investment.

The industry needs more disclosure and transparency. But it needs it in a way that makes sense. Try buying a house, so much paperwork to prevent lawsuits that you feel like suing over the amount of disclosures to prevent lawsuits.

Bottom line, criminal activity is criminal. Who regulates it doesn't stop it. States would probably enforce it even less, since it would cost the state jobs and investment capital (everyone would invest in the great investment scheme in another state... don't think it wouldn't happen).

Dan

 

[bluemarlin08]

I think I heard about this story. Did he work for a well known broker dealer that pushes mutual funds and is HQ in St. Louis?

Nope, firm was based out of Nashville, I was with them for several years in the 80's. The firm is a great honest firm but they had to pay a large legal bill defending against lawsuits. It was a total shock to all that knew him, no one could believe.