Renaissance Asset Fund- Ponzi Scheme Directed at Seniors
The SEC is reporting a new ponzi scheme, which started in 1999 and was directed at senior citizens.
The SEC "filed an action charging Renaissance Asset Fund, Inc., Ronald J. Nadel, and Joseph M. Malone with fraudulently raising over $16 million from more than 190 investors nationwide. The Commission's complaint, filed in the United States District Court for the Central District of California in Orange County, alleges that Renaissance and its principals operated a Ponzi scheme and used investor funds to pay lavish personal expenses. Many of their victims were elderly and were solicited through Jehovah's Witnesses congregations." (my emphasis) The full complaint can be read here.
This is an interesting fraud involving solicitations made to Jehovah Witnesses, which I suppose may strike some agnostics as a proof for the existence of a deity who has a mean sense of humour. Perhaps the God from the Old Testament.
This ponzi scheme lasted about 5 years, with promise of 17% - 24% yearly returns. So the five year period is entirely predictable.
It appears that only $2.3 million of the $16 million is readily identifiable as assets to return the "investors". But the SEC complaint only identifies $1 - $2 million that was repaid to "investors". This will be interesting to follow.
Technorati Tags: ponzi scheme, jehovah witnesses, renaissance, sec, seniors fraud
Comments
Here are several more instances of Jehovah's Witness con-men:
http://jwemployees.bravehost.com/NewsReports/2009.html
Posted by: Jerry Jones | July 16, 2007 7:15 AM