Affinity Ponzi Scheme Limps to an End
On May 22nd, 2006 the SEC announced that "the Honorable K. Michael Moore, United States District Judge for the Southern District of Florida entered a default judgment of permanent injunction against Jean Fritz Montinard (Montinard) for his involvement in an affinity fraud that targeted members of the Haitian-American community in Miami through local radio programs and presentations to Haitian-American church congregations." The default judgment means that Mr. Montinard likely chose not to defend the SEC action.
The SEC started their action against Focus Financial Associates Inc and some of its directors in June, 2005. The SEC alleged that "from February 2002 to July 2004, the Focus Companies and their principals raised approximately $6 million from about 600 Haitian-American investors living in South Florida. The Defendants offered twelve-month term notes that purportedly generated "guaranteed" annual returns of 15 to 20%. The Defendants told prospective investors that the funds they invested would be distributed to companies operating under a related "Focus" name, including an airline providing direct flights between Miami and Haiti, a tax return preparation service, a chiropractic center, a landscaping service, an auto dealership, and two auto repair shops, among others."
What are the chances that any of these business existed?
Technorati Tags: haitian american community, sec action, default judgment, american investors, prospective investors, american church, radio programs, district judge, injunction
Interestingly enough, all of them appear to at least be incorporated. A search at the Florida Corporations webpage for Focus Financial lists five directors: PIERRE-LOUIS, ALBY, FRANCOIS, MAX, JEAN-PHILIPPE, JULNER, LAROCHE, YANEL, and OMIER, MILTON G. By searching on each director's name, one can discover approximately 12 or 14 different corporations that these individuals are also directors of. The original complaint only names the first three directors as defendants, and it does not appear that any money has been recovered. Six million is a lot to lose, even if done intentionally. I wonder who owns the radio station?
Technorati Tags: haitian american community, sec action, default judgment, american investors, prospective investors, american church, radio programs, district judge, injunction
