Home Scam/Fraud A scam turns into a shoot-out

A scam turns into a shoot-out


Here are three of the week’s top pieces of financial insight, gathered from around the web:

A scam turns into a shoot-out

The FBI is investigating an alleged Ponzi scheme that became violent when one of the salesmen turned his gun on federal agents, said Ben Foldy in The Wall Street Journal. After being shot twice by the SWAT team called to his Las Vegas home, Matthew Beasley confessed that the “high-return, zero-risk investment plan” he helped pitch to investors was a fraud. “Investors, the majority of them Mormons,” were solicited to help finance a company that made “short-term loans to people awaiting payouts from settled personal-injury lawsuits.” They claimed payouts were 12.5 percent a year and not a single loan of the “over 16,000 in six-plus years” had gone bad. Nate Anderson, founder of the Hindenburg Research firm that uncovered the fraud through a citizen sting operation, called it “the most obvious Ponzi scheme we’ve ever…

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