Posted on 03/09/2022 8:48:42 AM PST by Coronal
AGreensboro man faces federal charges in a Ponzi scheme that defrauded at least 25 people out of about $6.8 million since 2014, authorities said.
David Schamens, 64, was charged Monday with wire fraud, securities fraud and money laundering, according to a news release from the U.S. Attorney's Office for the District of New Jersey. He is accused of using some of the money to repay earlier investors in the manner of a Ponzi scheme and to pay for his personal expenses, including a house and luxury car, according to the release.
Authorities accuse Schamens of fraudulently soliciting investments in various entities he controlled, including TD Trading LLC, TFG Trading LLC, TradeStream Analytics LTD, Tradedesk Financial Group Inc. and others, by promising investors they could see annual returns of 12% to 30%. In 2019, he began seeking investors in Tradestream Algo Fund, an algorithm-based trading pool that he claimed to have developed, according to the criminal complaint and statements made in court.
He is accused of moving money through several different bank accounts before using it for something not related to investing. Authorities say Schamens sent victims false account statements; posted false monthly account statements to his companies’ websites showing balances for trading accounts that did not exist; and sent false tax documents reporting earnings that did not exist.
Schamens face up to 20 years in prison and a fine of $250,000 on the wire fraud charge, up to 25 years in prison and a fine of $1 million on the securities charge and up to 20 years in prison and a fine of $500,000 on the money laundering charge.
(Excerpt) Read more at greensboro.com ...
$6.8 million? Over eight years? What a piker! Bernie Madoff was the real master!
Reminds me of Hillary Clinton’s son in law’s dad, Ed Mezvinksy.
You steal 7 million you go to jail. You steal $700 million you get an honorary doctorate and cocktail parties in your honor.
This reminds me of an article in AARP magazine back around 2004 in which they showed the Social Security System was NOT a Ponzi scheme.
A Ponzi scheme always collapsed. Because the SS system had not collapsed it was proof it was not a Ponzi Scheme.
A few pages on in the same issue, Jane Bryant Quinn showed how the Social Security System was set up. Without saying it, it was set up exactly like a Ponzi Scheme.
Why CAN’T I pay my Visa bill with my MasterCard?
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