Offshore Ponzi Scheme
"In its complaint, the Commission alleges that the defendants are offering and selling interests in purported foreign and international bank deposit programs (collectively "Bank Deposit programs") promising four to 12 percent monthly returns without risk to their investment principal. The Commission also alleges that investors send or wire their money to TNT or to one of Correll's entities -- Net Worth Group or TC&Co, and that all of the funds are then transferred to a Horizon Establishment bank account controlled by Correll. According to the complaint, investors are told that Correll, the "money manager," forwards investor funds to Cardno, who deposits them in an offshore reserve account; Cardno, identified as the "trader," with exclusive contracts with international banks, supposedly uses the monies in the reserve account to participate in trading programs and loan programs. In reality, according to the complaint, the Bank Deposit program does not exist and none of the investors' funds are sent to Cardno, his entities or to any offshore account for investment. Instead, as set forth in the complaint, all of the investor funds are commingled among various Correll-controlled accounts, and the "investment returns" paid to investors are Ponzi payments, i.e., they derive from the proceeds of more recent investors."
