"Life without Debt" schemer gets 17.5 yrs

Discussion of various forms of Advance Fee Fraud, including application fees for loans that never materialize, self-liquidating loan scams, as well as mortgage elimination scams and related debt elimination scams [Nigerian-type scams should go in the Nigerian 4-1-9 forum]
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"Life without Debt" schemer gets 17.5 yrs

Post by Demosthenes » Thu Aug 14, 2008 4:59 pm

Man gets 17 1/2 years over Texas, Alabama scheme
© 2008 The Associated Press
Aug. 13, 2008, 3:14PM

DALLAS — A former Dallas-area man convicted on 19 counts in a pyramid investment scheme has been sentenced to 17 1/2 years in federal prison.

The U.S. Attorney's Office in Dallas on Wednesday announced the sentence for 60-year-old James Ray Phipps, who operated the scam from his Colleyville home.

Prosecutors say Phipps, from 1998 to 2006, received at least $25 million from more than 30,000 participants in his "Life Without Debt" system.

Investigators say more than 90 percent of the participants lost their funds.

Phipps in 2007 was convicted of three counts of mail fraud, one count of wire fraud, 11 counts of money laundering, one count of corrupt endeavor to obstruct and impede the IRS and three counts of income tax evasion.

Phipps was arrested in 2006 in Anniston, Ala., where prosecutors say he had moved to continue running the scheme.

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Re: "Life without Debt" schemer gets 17.5 yrs

Post by Burzmali » Thu Aug 14, 2008 6:36 pm

Hey, wait a minute, only more than 90% of the participants lost their money? That means that almost 10% made money on this scheme! They should be giving this guy a medal, his program is far more successful than traditional MLM setups!

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Re: "Life without Debt" schemer gets 17.5 yrs

Post by Judge Roy Bean » Thu Aug 14, 2008 8:10 pm

This guy should have been gone long ago. He was involved in the UCC nonsense and "voluntary tax" movement as well.
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