Inside a Fraud - The Stan Van Etten Story
One of major factors in cracking a fraud is the willingness of the office staff to blow the whistle of the fraud.
It is a very difficult task, with no reward.
I wrote a couple a small story about Stan Van Etten and the International Heritgage Pyramid Scam.
The legal conclusion of that scam was that the"United States Attorney George E. B. Holding announced that Stanley H. Van Etten, 45, of Windemere, Florida, has been sentenced to ten years in federal prison for bilking thousands of investors out of over $165 million dollars. On Tuesday, November 21, 2006, United States District Judge Terrence W. Boyle ordered Van Etten to serve two 60-month terms in prison and to make restitution in the amount of $14,339,820 to the victims of the now defunct Mayflower Venture Capital Fund III."
Recently an employee, who worked in the office, wrote me and stated:
"I read your article regarding Stan Van Etten's recent sentencing. I am overcome with a sense of justice that I can't even describe. Stan was indeed a con man of the truest sense. For five years, I served [worked for him]. At the time, I was very young and very naive, but in retrospect witnessed some pretty pathetic stuff (not even realizing at the time, how illegal it was). I spend the majority of those five years fending off unwanted advances (I finally had to threaten him with a law suit), putting off bookies that Stan owed tons of money to and explaining to his banker why his account was continuously overdrawn. I finally left, when the SEC began it's investigation of F.N. Wolf. The only reason I stayed as long as I did, was because I too, even bought into this man's crap. When I finally figured out what a crook he was, I completely distanced myself from him. He tried to maintain contact, but I refused his calls. Make no mistake about it, Stan was not a "whistle-blower" regarding F.N. Wolf. He was in fact probably one of the guiltiest parties of the entire lot and only decided to assist the SEC to save his own behind. I have been following the IHI case since it's onset and am so very glad the those individuals who were scammed by this creep, have finally received justice."
I asked the employee how Stan was able to convince people of his lies, and the employee responded:
"You know I have often asked myself that very question. He is nothing to look at yet he is very charismatic and extremely convincing. I have finally determined that he is so narcissistic and such a compulsive liar that he now believes his own lies and that is what makes him so convincing. I read one article about him several years ago telling a story about him losing his hearing due to a diving accident as a child. The mere fact that he survived (according to the article) is what makes him such a true survivor today. Stan did suffer from some hearing loss, but the story he and his brother told me was that his brother lit a firecracker next to Stan's ear and blew out his ear drum. See what I mean. Compulsive liar. Yet I guarantee you that Stan totally believes the diving story now. Truthfully, you are not only dealing with a criminal here, you are dealing with a very mentally disturbed individual who would probably be better served in a mental institution.
It said in the news story covering his sentencing that it took him 8 years to admit wrongdoing. Why do you think that is? I'll tell you. Stan truly did not believe that what he did was wrong. It was only after being told what would happen if he were found guilty versus pleading guilty that he finally submitted. I guarantee you that he still believes he did nothing wrong."
The office staff knows of frauds and scams long before anyone else. But they don't want to blow the whistle, for very good reasons.
I want to thank this employee for bringing to light the difficult situation that he/she was in.
But, if you are an office worker in this situation, call or email me -right now, before anyone else gets hurt. Lawyers can provide confidentiality that no other professional can give you. Please think about- help save your a fellow's life.
Comments
I think the basic premise behind IHI was sound and legal... they got into trouble because some reps were promoting it as an investment. It was a fun time and I personally recruited several friends into it... and we are all still friends today.
Posted by: jw | February 22, 2008 6:04 PM
One more post without the grammatical errors in my initial post that was rushed.
Now that I have more time, I'd like to elaborate about my own experiences with the F.N. Wolf crowd which ultimately became the Internat'l Heritage crowd...
I met John Brothers in the early 90s because I was in my early 20s and was still socializing quite a bit at the Raleigh popular spots.
At that time (and some of you may recognize this), John owned a flashy red Mercedes on which the NC tag read EZMONEY.
And it didn't stop there.
Almost every night, he was at The New Bar, living it up and paying for the ladies drinks and boy was he a game player.
Although I didn't like him from the start because of his obvious cockiness and attitude about Southerners (he was from Jersey and referred to us Southern girls as "dumb"), I was still heavily involved in his social circles because my own friends were crazy about him.
Not to mention the fact that my own best friend was having a full on affair with Stan Van Etten, behind her own Husbands back and Stan's wife, Keri.
It was all a huge drama with these people. ALmost like a movie. These guys at FN Wolf all drove lavish Porsches, BMWS, Mercedes... and the list went on.
Almost like the Billionaire Boys Club (remember Joe from USC in Cali who masterminded a huge scandal)? These FN Wolf guys were raking in the money, far beyond anyone else.
I knew important Brokers at Merrill Lynch who weren't even skirting the income of these FN Wolfers.
People were dumbfounded but never guessed the scam they were pulling.
I accompanied a friend to dinner with Stan one evening, and he sat there with a phony poised and calm disposition.
He attempted to make me think he was brilliant. And he was.
He was a highly intelligent man but mostly because he had mastered the art of how to carry himself.
And then the threats and control tactics on my friend were scary.
These guys had no respect for others and used people.
Posted by: Shea | February 10, 2008 7:45 PM
I am not surprised to learn about Stan Van Etten. When he worked at FN Wolff, along with John Brothers and the rest of the gang (early 90s), they all frequented places like "The New Bar" and Lucky 32. Stan drove a posh Prosche and flaunted his crooked wealth. Unfortunately the man came to my house on many occasions to visit one of my dearest friends who was one of his conned victims. It took me all of five minutes to size him up as a real con artists, smooth talking pathetic excuse for a being. I am SO happy to hear that this man was finally realized by others who finally outsmarted him.
Posted by: shea | February 10, 2008 4:06 PM
Lisa,
The contact number was valid in November, 2006.
I think that you should start there and post any information about the restitution process.
I have some doubts that anyone will see anyone money out of this.
Posted by: michael webster
|
July 9, 2007 7:23 PM
Do you know if they still have a open case?
Posted by: Lisa | July 9, 2007 3:19 PM
Try contacting the FBI for more information, here is the contact number for this case.
The United States Attorney's Office
Eastern District of North Carolina
CONTACT: 919/856-4530
Posted by: Michael Webster | July 9, 2007 2:54 PM
I was refering to the:
restitution in the amount of $14,339,820 to the victims of the now defunct Mayflower Venture Capital Fund III."
Posted by: Lisa | July 9, 2007 2:24 PM
Lisa, I believe that International Heritage was in bankruptcy hearings some eight or nine years ago.
I think that the trustee was Holmes P Harden
Williams Mullen Maupin Taylor
A Professional Corporation
P. O. Drawer 19764
Raleigh, NC 27619-9764
919 981-4000
But I believe that he was discharged and the case closed in March, 2007
Posted by: Michael Webster | July 9, 2007 2:16 PM
How would you go about getting your money back? My brother has invested in this! Thanks
Posted by: Lisa | July 9, 2007 1:58 PM