As a global investment manager, Martin Armstrong had little trouble selling himself to sophisticated clients overseas. On the strength of a stellar performance record, an impressive Web site and his claims of running one of the world’s largest economics advisory firms, he raised more than $3-billion from Japanese companies eager for American-style gains in their portfolios.
Now those companies are facing giant losses and probably ruing the day they heard of Armstrong’s investing techniques.I
According to a complaint unsealed Monday by Mary Jo White, the U.S. attorney for the Southern District of New York, Armstrong lied about returns he was generating in his customers’ accounts and illegally pooled their money, essentially using funds raised from new investors to pay off older customers.
The fraud appeared to be a desperate attempt to hide massive trading losses. Armstrong owes some $1-billion to investors, but prosecutors say only $46-million in assets remains in the accounts.
https://www.tampabay.com/archive/1999/09/15/securities-fraud-charges-reach-500-million-mark/
I don’t see the problem here. You just pay off one credit card with another. The credit card companies are always sending me applications. You just got to have a system of who pays off when. You just keep rolling it up until they catch you and you go BK. As I said, it’s not a problem.