PONZI AMERICA

BLOOMBERG-- A North Carolina man and a Texas man were arrested on federal charges that they defrauded investors of $80 million in a Ponzi scheme using purported investments in automatic teller machines.

“It was a classic Ponzi scheme,” Joseph Demarest, assistant director in charge of the Federal Bureau of Investigation in New York, said today in a statement. “The phantom revenue came from new investors. The scheme itself, until discovered, was one giant cash machine.”

According to a newly unsealed conspiracy and fraud investment, Moore, 55, and Netschi, 62, told investors that their money would be used to buy ATMs to be placed in retail locations around the country, and that fees from the machines would repay investors.

“In truth and fact, Moore and Netschi did not use the victims’ funds to purchase ATMs, but rather used the money to further the fraudulent scheme and to enrich themselves,” U.S. Attorney Preet Bharara in New York said in the statement.


BANZAI7 NEWS-- Corporate America has defrauded investors of billions in a giant Ponzi scheme using investments in purported income generating businesses.

“It is a classic Ponzi scheme,” Joe the Dentist, assistant director in charge of the Federal Bureau of Investigation in New York, said today in a statement. “The phantom revenue comes from new junk bond investors. The bond principal is later marked down in Chapter 11. The scheme itself, until discovered, will continue to be one giant cash machine.”

According to a BANZAI7 study, acquisitive corporate executives tell investors that their money would be used to buy businesses generating income that will be used to repay the bonds.

“In truth and fact, executives use the victims’ funds to create giant pyramids of non-performing business assets and to enrich themselves with obscene compensation packages."