Tag: Ponzi Scheme
A Ponzi scheme is a particular type of pyramid scheme — an investment scam in which investors are paid from capital brought in by new investors, rather than from profits earned.
The fraudulent scheme is named after Charles Ponzi, who in 1920 applied the technique which was previously presented in works of fiction, such as Charles Dickens’ 1844 novel Martin Chuzzlewit .
Here is how a Ponzi scheme works:
And here’s an archive of news stories regarding Ponzi schemes with a religious angle:
Three religion-related fraud schemes that didn’t have a prayer.
One of the owners of a Christian non-profit company accused of defrauding churchgoers in Arizona and 12 other states has admitted funneling millions in investors’ money into offshore accounts as part of a pyramid scheme.
A look at the Oral Roberts University empire.
Oral Roberts University captured attention for money woes and messages from God long before a lawsuit filed last week alleged illegal political involvement and misspending for the benefit of the university president’s family. But Tulsans said they are waiting for evidence to back up the recent accusations before guessing at the fate of the city’s charismatic Christian icon.
A 50-year-old Canton man facing a life sentence after masterminding a multimillion-dollar Christian-based investment scam was apparently trying to arrange to have U.N.-backed armed commandos bust him out of the federal prison, according to court testimony Tuesday.
A Chandler officer indicted in a public corruption case resigned Thursday before police could question him, and as state prosecutors released documents detailing how they linked him to the case.
Groups affiliated with the Church of Scientology have agreed to pay back $3.5 million they received from former Santa Barbara money manager Reed Slatkin and others who invested with him.
(AP) – Randall W. Harding sang in the choir at Crossroads Christian Church in Corona, Calif., and donated part of his conspicuous wealth to its ministries. In his business dealings, he underscored his faith by naming his investment firm JTL, or “Just the Lord.” Pastors and churchgoers alike entrusted their money to him. By the time Harding was unmasked as a fraud, he and his partners had stolen more than $50 million from their clients, and Crossroads became yet another cautionary tale in what investigators say is a worsening problem plaguing the nation’s churches. Billions of dollars has been stolen
Investors Lost $585 Million PHOENIX, July 24 — Two former executives of a failed Southern Baptist foundation were convicted here Monday in what prosecutors said was the nation’s largest fraud ever targeting members of a religious group. William Pierre Crotts, who was president of the Baptist Foundation of Arizona, and Thomas Dale Grabinski, the group’s former chief legal counsel, were each convicted of three counts of fraud and one count of conducting an illegal enterprise in a scheme that lasted decades and cheated 11,000 investors across the country of about $585 million. In a trial that lasted 10 months, prosecutors
The SEC has announced charges against a California-based corporation and its principals for a scam that defrauded the elderly. The Commission charges that Renaissance Asset Fund, Inc., Ronald J. Nadel, and Joseph M. Malone raised more than $16 million from more than 190 investors nationwide. In what the regulator called a classic Ponzi scheme, Nadel and Malone solicited aged investors through Jehovah’s Witnesses congregations and used the proceeds to fund their lavish lifestyles. The SEC’s complaint, filed in a California federal court, charges Renaissance, Nadel and Malone with violating federal securities laws, violating broker-dealer registration provisions and seeks disgorgement of