Crimes of Persuasion: Schemes, scams, frauds. Examples platinum forex trade investment properties Ponzi Scheme Fraudulent Investments Party On Lake States Inc.
The promoters hosted lavish parties where investors discussed their good fortunes amongst themselves, creating a collective sense of trust and well-being. 335 million after he found out that laxly regulated insurance companies are the perfect target for scam artists as they collect regular cash premiums that are paid out only as policies come due. 1m had disappeared from a fund he managed – Frankel was able to set up Liberty National Securities, an unlicensed brokerage. He took over Liberty National, which sold burial policies, then, using its assets, went on to gain controlling stakes in insurance firms in Arkansas, Mississippi, Missouri, Oklahoma and Tennessee.
208 million in cash reserves for an extravagant lifestyle consisting of jets, lavish parties and a bevy of live-in ladies. A college dropout, obsessed over the financial markets, he also bought side-by-side mansions in Greenwich Conn. 3 million each with proceeds from his scheme. Wishing to draw in more money he created a benevolent foundation which purported to not only generate high returns for investors but would acquire insurers and use the profits for charitable purposes.
While pitching it he displayed an in-depth knowledge of the saints, especially St. Francis, who was known for helping the poor. A well-connected New York business consultant introduced Frankel to various movers and shakers who Frankel hoped would add legitimacy to the St. It soon attracted investments from major church groups but eventually he was forced to flee when authorities intervened. While eleven insurance companies in five states were horrified to learn of the missing assets, so were some prominent people whose names had been attached to the charity without their permission.