Time Share Ponzi Scheme - $28 Million Lost by 600 Investors in Business Opportunity Scam
From 2000 through to 2003, some 600 investors all over the United States gave $28 million to "Missouri-based Branson City Limits, Inc. and Nevada-based Resort Hotels, Inc. through defendants Patrick L. Ballinger ("Ballinger"), 55, Dennis R. Weaver ("Weaver"), 54, of Jackson, Tennessee, Kosta S. Kovachev ("Kovachev"), 51, of Lake Worth, Florida, Lee E. Larscheid ("Larscheid"), 54, of Branson, Missouri, Benny G. Morris ("Morris"), 46, of Palm Harbor, Florida, Darin W. Roberts ("Roberts"), 29, of Branson, Missouri, Linda M. Sears ("Sears"), 50, of Seminole, Florida, Todd R. Walker ("Walker"), 44, of Tampa, Florida, Missouri-based Ozark Ticket and Travel, Inc. ("Ozark Ticket") and Nevada-based Universal Financial Leasing, Inc. ("Universal Leasing")" to invest in a fraudulent business opportunity structured as a rental time share.
According the SEC, "Branson City and Resort Hotels' main principals, Ballinger and Weaver, prepared fraudulent promotional materials. With the assistance of Kovachev, Roberts, Sears, and Walker, who are all Branson City or Resort Hotels principals or agents, Ballinger and Weaver distributed these fraudulent promotional materials to sales agents and otherwise promoted Branson City and Resort Hotels to an extensive sales network. This sales network was recruited and trained primarily by Morris, through Morris' company, Universal Leasing, both of whom acted as unregistered broker-dealers. Among other things, Morris and Universal Leasing distributed these fraudulent offering materials to the sales network for use in the solicitation of investors. Morris, at times through Universal Leasing, was paid a commission on every sale, and Roberts was paid a commission on sales by sales agents he recruited. Morris (at times, through Universal Leasing) and Sears processed new investor documentation, and handled new investors' funds. From at least September 2000 to the present, through this sales network, Branson City and Resort Hotels have collectively raised at least $28 million from at least 600 investors in 30 states." (my emphasis) The complaint can be read here.
Today, almost six years later, the SEC announced that (2) of the defendants had consented to an order requiring "the payment of disgorgement and, in the case of Kovachev, a civil financial penalty. The final judgment against Kovachev: (1) orders him to pay disgorgement in the amount of $217,527.21 and prejudgment interest in the amount of $20,621.15; (2) orders him to pay civil penalties in the amount of $120,000; and (3) permanently enjoins him from future violations of Sections 5(a), 5(c), and 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934, and Rule 10b-5 thereunder. The final judgment against Roberts: (1) orders him to pay disgorgement in the amount of $125,097.08 and prejudgment interest in the amount of $8,145.22"
What are the chances that if paid, any of the elderly investors who wre scammed by this business opportunity will see any money? Do I hear a bid for zero?
Technorati Tags: branson missouri, branson city, missouri based, palm harbor florida, seminole florida, ozark ticket, morris morris, nevada based, resort hotels, ballinger, fraudulent business, weaver, financial leasing, sears, walker, universal
