[Nunya]

https://www.sec.gov/litigation/compl...pr2018-171.pdf

From page 16.

Often the Company would not generate enough money from the MCAs to fully pay redeeming investors, forcing the Company to use new investor funds to pay off redeeming investors.

Isn't there a name for this? Starts with a P... Pon... Pon... Ponzi?

[Michael I]

did a broker get commission on the 40 million dollar deal they did

[Davincinc]

did a broker get commission on the 40 million dollar deal they did

lender got setup fees to draw down on the 40m so the whole company did, and inhouse brokers upsold the buy rates to the selling broker

[Happy Horse Shit]

What amazes me more is that with that many different people investing money, not one Tax CPA ever questioned any of these folks about "the investment". The fastest way for any financial professional to weed out a frauds is find out who the accounting firm is for the company--in a fraud it is always some piker that has no office and the scam company is his only client, also check to see who the listed auditor is and then call them and ask if they are actually contracted to that company to perform an audit, again if the auditor is like the accounting firm--no one has ever heard of them---you don't need to go no further --run in the opposite direction and call your state financial services office and tell them-- and maybe they can save some suckers that did no due diligence.

[Michael I]

What amazes me more is that with that many different people investing money, not one Tax CPA ever questioned any of these folks about "the investment". The fastest way for any financial professional to weed out a frauds is find out who the accounting firm is for the company--in a fraud it is always some piker that has no office and the scam company is his only client, also check to see who the listed auditor is and then call them and ask if they are actually contracted to that company to perform an audit, again if the auditor is like the accounting firm--no one has ever heard of them---you don't need to go no further --run in the opposite direction and call your state financial services office and tell them-- and maybe they can save some suckers that did no due diligence.

correct me if i am wrong but it did not seem like any one person gave to much money . seems they were smart to have 5000 people as opposed to 500 that would have looked in deeper

[Happy Horse Shit]

It looks like many people invested their whole IRA into this--any Tax accountant should have been alerted if he saw above average rates of returns. The CPAs I know who deal with middle class clients do look at things and make suggestions, and ask questions as they should do. That is why with that many clients it is hard too believe no one challenged the clients on what they were investing in. Even if it was just a greedy CPA trying to figure out how to get himself involved in high percentage returns.

[Karen37a]

It looks like many people invested their whole IRA into this--any Tax accountant should have been alerted if he saw above average rates of returns. The CPAs I know who deal with middle class clients do look at things and make suggestions, and ask questions as they should do. That is why with that many clients it is hard too believe no one challenged the clients on what they were investing in. Even if it was just a greedy CPA trying to figure out how to get himself involved in high percentage returns.

They made up fake statements...which i think were turned in for taxes etc ( on the individual investors, thousands)...thats why this is a cluster fck from hell

and I am speculating ** I do not know these people

This is also why I think they caught them a year ago and just tapped the phones

anyway...not my problem

[Jess]

90% if time. But if auditors are raking in ridiculous above market fees they will sign anything. Even if there is an audit done-the question should be “how much did you pay your auditing firm for all services performed during the year”. I’ve seen PWC phone it in for fees and regional “roll up” firms will sign anything if the price is right. Hey MCA company! Is there a reason why you paid over $200k in audit fees last year? Yep that’s right 200k.

[Shorebird]

40 Million Dollar MCA. Wow!

[Karen37a]

https://www.sec.gov/litigation/compl...pr2018-171.pdf

From page 16.


Isn't there a name for this? Starts with a P... Pon... Pon... Ponzi?

That's why they are going to take his house, his car, his dog....everything

And they are going to come full force for the money

And its the SEC and their lawyers...state lawyers, insurance lawyers ...individual lawyers

[Karen37a]

See this is what I heard thru the grapevine and why I said it is bad bad bad bad

1 Global used a network of barred brokers, registered and unregistered investment
advisers, and other sales agents - to whom they paid millions in commissions - to offer and sell
unregistered securities to investors in no fewer than 25 states.

[WestCoastFunding]

See this is what I heard thru the grapevine and why I said it is bad bad bad bad

All of them were 1099s tho.

[Jess]

To button this up. The takeaway is that the SEC is rather feckless. They are reactive and they had no choice to act due to bankruptcy. They are not proactive so the syndication cash misappropriations will continue unabated.

[Karen37a]

To button this up. The takeaway is that the SEC is rather feckless. They are reactive and they had no choice to act due to bankruptcy. They are not proactive so the syndication cash misappropriations will continue unabated.

Well when they slap this guy silly ...maybe some other people will wake up

[Karen37a]

You know what the best part of this...people will realize that you can't just drag the rates down to whatever and give out money and not underwrite correctly and not get the money back on collection

it doesn't work that way...so people can stop cheering for companies whose rates are in the teens

I've said from the beginning ... I don't want to sell higher rates... I just know the other is not sustainable

its a big Ponzi w/2 salary, co-mingling cash mess

And some talked down to legitimate 1099 brokers? pfft

[Jess]

[QUOTE=Karen37a;102011]You know what the best part of this...people will realize that you can't just drag the rates down to whatever and give out money and not underwrite correctly and not get the money back on collection

it doesn't work that way...so people can stop cheering for companies whose rates are in the teens

I've said from the beginning ... I don't want to sell higher rates... I just know the other is not sustainable

its a big Ponzi w/2 salary, co-mingling cash mess

And some talked down to

[Karen37a]

You have to understand that the SEC under trump is for sale.

Maybe but when you get charged with Ponzi and fraud in Florida...especially on the Elderly and Investments

It triggers the attention of myriad state and federal agencies, each of whom can bring actions against those allegedly involved in the plan to defraud consumers.

The Federal Trade Commission (FTC), which investigates consumer fraud cases.

The Securities and Exchange Commission (SEC), which investigates securities fraud.

The Financial Fraud Task Force, which is a coalition including 94 U.S. Attorneys Offices as well as 20 federal agencies charged with coordinating efforts to investigate and prosecute “significant” financial crimes.

The Internal Revenue Service if the criminal scheme involved tax fraud.

State attorney generals and local prosecutors, who may pursue fraud charges.

A U.S. Attorney, who may pursue fraud charges

A criminal investigation may be triggered if federal or state authorities believe you are selling unregistered investments, or that unlicensed sellers are selling investment products. then they face serious consequences including felony charges.


( they will not just skip off they will make an example out of them) IMO

I got in seriouos trouble over 3 glasses of wine...they go nutso here

[Jess]

Maybe but when you get charged with Ponzi and fraud in Florida...especially on the Elderly and Investments

It triggers the attention of myriad state and federal agencies, each of whom can bring actions against those allegedly involved in the plan to defraud consumers.

The Federal Trade Commission (FTC), which investigates consumer fraud cases.

The Securities and Exchange Commission (SEC), which investigates securities fraud.

The Financial Fraud Task Force, which is a coalition including 94 U.S. Attorneys Offices as well as 20 federal agencies charged with coordinating efforts to investigate and prosecute “significant” financial crimes.

The Internal Revenue Service if the criminal scheme involved tax fraud.

State attorney generals and local prosecutors, who may pursue fraud charges.

A U.S. Attorney, who may pursue fraud charges

A criminal investigation may be triggered if federal or state authorities believe you are selling unregistered investments, or that unlicensed sellers are selling investment products. then they face serious consequences including felony charges.


( they will not just skip off they will make an example out of them) IMO

I got in seriouos trouble over 3 glasses of wine...they go nutso here

Well if they charge you then all bets are off. But if you have political or $ leverage you won’t be charged. Unfortunately witnessed first hand. Easy to see how many corrupt players get away with massive fraud.

[Karen37a]

Well if they charge you then all bets are off. But if you have political or $ leverage you won’t be charged. Unfortunately witnessed first hand. Easy to see how many corrupt players get away with massive fraud.

My friends were friends with an ex gov in florida..i still got in trouble for 3 glasses of wine lol

they have mandatory sentencing here...you cant get out of it

[mcaguru]

can they come after the ISO WORLD for paid commissions ?> meaning at the time of funding the commission is technically NOT related to the funding its capital in a bank (that belongs to investors perhaps?) so will they come after innocent ISO's for commissions paid ? that would really hurt our space! That’s the only small concern for those that worked with them. Otherwise the fallout does not effect the iso world sadly just the investors that I doubt came from iso world.

[Jess]

can they come after the ISO WORLD for paid commissions ?> meaning at the time of funding the commission is technically NOT related to the funding its capital in a bank (that belongs to investors perhaps?) so will they come after innocent ISO's for commissions paid ? that would really hurt our space!

No

[mcaguru]

No

if thats the case then i dont see long term effects to our space. if letters go out to isos that they have to repay commissions ----- that can have a real bad effect on our industry i don't think ISO's have funds laying around to repay old old commissions!

[rdgllc]

if thats the case then i dont see long term effects to our space. if letters go out to isos that they have to repay commissions ----- that can have a real bad effect on our industry i don't think ISO's have funds laying around to repay old old commissions!

That would be a disaster although I don't foresee that happening (hopefully).

[Karen37a]

if thats the case then i dont see long term effects to our space. if letters go out to isos that they have to repay commissions ----- that can have a real bad effect on our industry i don't think ISO's have funds laying around to repay old old commissions!

Some isos don't have cash lying around, which is why they are not a "true iso" they are a broker who got a business card that said LLC who sends business to a white label who sends it to the Direct Funder who gets money from an investor or bank

Technically the super iso or white label would be responsible...if they came for it...which they most likely won't unless they knew about the fraud and actively participated in it


* but anything can happen...and I am not a lawyer

[Michael I]

Some isos don't have cash lying around, which is why they are not a "true iso" they are a broker who got a business card that said LLC who sends business to a white label who sends it to the Direct Funder who gets money from an investor or bank

Technically the super iso or white label would be responsible...if they came for it...which they most likely won't unless they knew about the fraud and actively participated in it


* but anything can happen...and I am not a lawyer

There are iso that got hundreds of thousands in commissions from them over time .if they were to claw back even big profitable iso will close down .large iso we can be talking about over a million