An Ill-Fated Scheme and a Voodoo Spell
Summary
It’s often found where one would least expect it, whether a Ponzi scheme perpetuated through a religious organization or other strong affiliate network, a caretaker pilfering from a family member’s asset accounts via financial elder abuse, or when a trusted employee realizes he can exploit his position to provide himself with “deserved” additional income. Such was the case with a $20 million fraud scheme perpetuated through a supposed luxury sportswear company, which ended with the perpetrator attempting to cast spells to deter authorities from the US Department of Justice (DOJ) and the Securities and Exchange Commission (SEC). When there were insufficient funds to meet investor demands for payment, the company obtained a $750,000 line of credit by falsely claiming an investment portfolio of millions when the true value of the reported account was $35. The bank employee was concerned that the investment was too risky and further bank inquiries into Ms. Bennett uncovered that she had previously been charged with fraud by the SEC for making false claims regarding the amount of her assets under management and misleading assertions that she was achieving investment returns in the top 1 percent of firms worldwide. Subject to the statute of limitations, a court-appointed receiver or bankruptcy trustee can attempt to clawback a winner’s gains for re-distribution to other victims who lost their investment.