IN­SIDE A PONZI SCHEME

PONZI FA­MOUS SCHEMERS

Finweek English Edition - - INSIGHT -

LOU PEARL­MAN (1954-present)

OC­CU­PA­TION: Avi­a­tion com­pany owner, co-founder of Trans Con­ti­nen­tal Records

PENALTY: 25 years im­pris­on­ment. One-time man­ager to the Backstreet Boys, N’Sync and LFO, Pearl­man used a com­pany that only ex­isted on paper to swin­dle in­vestors out of hun­dreds of mil­lions of dol­lars. Pearl­man went on the run when the scam sur­faced and was even­tu­ally caught in In­done­sia.

LOSS TO IN­VESTORS:

$3 000m to 1 000 in­di­vid­u­als, $150m to banks.

GER­ALD PAYNE

OC­CU­PA­TION: ‘Pros­per­ity the­olo­gian’ PENALTY: 27 years im­pris­on­ment, 12.5 years im­pris­on­ment for his wife. Min­is­ter Payne bilked his mega church of mil­lions of dol­lars by promis­ing that Scrip­ture would in­struct him on how to get good re­turns. By the end of the scam there was $20m in Payne’s bank ac­count. As for the rest, he stays he “lost it”.

LOSS TO IN­VESTORS: $500m to 18 000 church mem­bers.

MICHAEL EU­GENE KELLY (1949-2013)

OC­CU­PA­TION: Pres­i­dent and sole share­holder of Yu­catan In­vest­ment Corp. and Re­sort Hold­ings In­ter­na­tional Inc.

PENALTY: Five years im­pris­on­ment, $342m for­fei­ture. Us­ing 25-year in­vest­ment terms; Kelly was able to pay back in­vestors for a time. By of­fer­ing ‘uni­ver­sal leases’ that promised in­vestors re­turns on property, Kelly used in­vestor money to buy houses and ho­tels for him­self.

LOSS TO IN­VESTORS: 7 000 vic­tims re­sult­ing in $340m loss.

BERNARD MAD­OFF (1938-present)

OC­CU­PA­TION: Stock­bro­ker, chair­man of Bernard L. Mad­off In­vest­ment Se­cu­ri­ties LLC, For­mer chair­man of Nas­daq PENALTY: 150 years im­pris­on­ment

LOSS TO IN­VESTORS: $17.179bn for­fei­ture

($65bn).

Newspapers in English

Newspapers from South Africa

© PressReader. All rights reserved.