We have another Ponzi scheme busted by the Securities and Exchange Commission. This time it was only $2 billion. I heard they are starting a new club-Ponzi Us!They froze the assets of a hedge fund in the amount of $2 billion feeder fund. The name of the businessman was Thomas Petters. How do these people get away with this when we have a heavy duty monitoring system? Are these officials accepting bribes to look the other way or are they that naive? You have to think about this at times.
"Bell lied to investors to induce them to hand over their money, and then hung them out to dry while millions of dollars in fees continued to flow into his own pockets," said Merri Jo Gillette, head of the SEC's regional office in Chicago. The SEC's securities lawsuit against Petters accuses him of running a Ponzi scheme from 1995 through last September. In the scheme, Petters allegedly promised investors that proceeds from the notes they were sold would finance the purchase of consumer electronics by vendors, who then re-sold the merchandise to big retailers such as Wal-Mart Stores Inc and Costco Wholesale Corp.
It was a complete bust and this person cheated money out of investors to bottom line this story. There is no more trust on Wall Street. Where will people put their money? Real estate and other alternative investments will be the answer. People will start purchasing tangible assets and avoid paper assets to obtain a sense of security. People can no longer fool around with their retirement money. They will need it to live on when they become old. We need to educate more people about the power of real estate investing.