New Prime Bank Fraud - Geoffrey A. Gish; Weston Rutledge Financial Services, Inc
On May 17th, the SEC announced that it had taken action against Geoffrey Gish and Weston Rutledge Financial Services, among others. It is alleged that between February, 2004 and May, 2006 Mr. Gish had stolen at least $8.8 million from at least 100 individuals. The method Mr. Gish used was a prime bank scheme, which was operated as a ponzi scheme. This scheme last less than 2 years, which is reflected by the unusally high payouts, 60% in a year.
The SEC alleges that Mr. Gish enriched himself by diverting $100,000 from the corporate bank accounts. The entire complaint can be read here. According to the complanint, Mr. Gish simply directed his staff to create the various returns on spreadsheet. How would the Yellow Kid have covered his tracks for this sort of scheme?
Technorati Tags: gish, ponzi scheme, stealing money, yellow kid, sec, prime bank, bank accounts, horse race, rutledge, enriched, weston, spreadsheet, convince, financial services
Technorati Tags: ponzi scheme, gish, technorati, sec, prime bank, bank accounts, rutledge, stealing money, enriched, weston, spreadsheet, yellow kid, financial services, horse race, convince
In his biography, the Yellow Kid describes stealing money from individuals who thought they were in league with the Kid on fixed horse race. The Kid was able to convince more than a few lacrenous souls that he could fix a race. Of course not only didn't the Kid fix the race, he never even bet the money. What he did do was convince more than a few bookmakers to enter a notation into their books showing that the Kid had "made" a very large wager. That way when the mark complained, he could not claim that the Kid had failed to fix a horse race! My guess is that the larger hedge fund failures, with massive losses, may well be using a similar method to "cool off" the "investors."
Technorati Tags: gish, ponzi scheme, stealing money, yellow kid, sec, prime bank, bank accounts, horse race, rutledge, enriched, weston, spreadsheet, convince, financial services
Technorati Tags: ponzi scheme, gish, technorati, sec, prime bank, bank accounts, rutledge, stealing money, enriched, weston, spreadsheet, yellow kid, financial services, horse race, convince
