Indictments in $33 million Ponzi Scheme

Stock and Bond Fraud, including Boiler Rooms / Pump and Dump Schemes, Mutual Fund & Hedge Fund Fraud, FOREX scams, plus Churning, Private Placements, Venture and Bridge Funding, IPOs, Viaticals Fraud, HYIP and Prime Bank scams, MTNs, Historical Notes, Recovery Schemes, etc. Includes the Jim Norman Project and the Michael Dotson Project and similar HYIP scams.
User avatar
Illuminati Obfuscation: Black Ops Div
Posts: 3895
Joined: Tue Jan 23, 2007 2:41 am

Indictments in $33 million Ponzi Scheme

Postby webhick » Sun Apr 11, 2010 4:45 am

A mortgage firm named Financial Resources Mortgage Inc. in Meredith, NH closed its doors since last November along with other businesses the in which the principles were involved. It has since turned out that Scott Farah and Donald Dodge were operating an ponzi scheme and were disguising it as a real estate investment firm. From what I've been reading since then, they would get people to invest large wads of cash into construction projects with the promise of massive returns. Some of these construction projects did not so much as have a building permit pulled, while others stand half-finished. It looks like Scott personally took $20m of investor money.

Apr 10, 2010 - Indictments leveled in Ponzi case

An interesting aspect of this story for me has been the Center Harbor Christian Church. Scott's father, Pastor Robert Farah, runs the church and Scott was the treasurer up until his business folded. The good Pastor has been accused of talking church members into investing with his son's firm, as well as investing in it himself. It's also been said that towards the end, the Pastor tried to help keep his son's company afloat by mortgaging his own luxurious home. According to the most recent news story, the church has now been ordered to pay back $670,000, which the Pastor is insisting was "donated" funds. Apparently the SEC thought otherwise after reviewing the records.

I've included links to the rest of the Concord Monitor stories so you can read the details:
Apr 25, 2006 - Churchman Accused of Fraud
Nov 18, 2009 - FBI investigating ex-mortgage firm
Nov 21, 2009 - N.H. attorney general to force mortgage firm's bankruptcy
Nov 22, 2009 - Behind a failed mortgage company
Nov 25, 2009 - Companies lose control over assets
Nov 29, 2009 - Condos sit empty; developer explores options
Dec 4, 2009 - Firms were Ponzi fronts, lawyer says
Dec 5, 2009 - Dad: I wasn't involved in business
Dec 10, 2009 - Mortgage company accounts scrutinized
Dec 23, 2009 - Firm had history of problems
Dec 26, 2009 - Despite warnings, mortgage firm kept license
Dec 31, 2009 - Bankruptcy prompts call for new rules
Jan 3, 2010 - Was investment suit a warning sign?
Jan 20, 2010 - Investment firm's records demanded
Feb 4, 2010 - Bankruptcy inquiry turns to pastor
Feb 7, 2010 - Ponzi case exposes chiefs' rift
Feb 10, 2010 - Investors sue Concord developer
Feb 10, 2010 - Lawyers: Scam benefited pastor
Feb 11, 2010 - Bankruptcy spurs calls for inquiry
Feb 19, 2010 - Securities chief: Firm was on radar in 2003
Feb 20, 2010 - Accused investor awash in debt
Feb 26, 2010 - Bankruptcy case stretches law firm
Mar 3, 2010 - Family finances in court files
Mar 13, 2010 - Legislature to probe regulation of failed firms
Mar 24, 2010 - Broker silent as investors bare anger
Mar 30, 2010 - Firm was sinking ship, owner says
Apr 2, 2010 - Church sued over investments
When chosen for jury duty, tell the judge "fortune cookie says guilty" - A fortune cookie

Return to “THE DILIGIZER BOARD -- Securities Fraud -- Due Diligence in Finance”

Who is online

Users browsing this forum: Common Crawl [Bot] and 0 guests