DFS Arrests Two S. Fla. Agents in $1.2 M Ponzi Scheme

May 17, 2005

  • June 2, 2006 at 1:24 am
    Get the Point says:
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    That comment flew over your head at a 45degree angle. The point is, some of the investors who came to court and truly didn\’t know what they wanted to accomplish – money vs. jail time, no I want my money, no I want justice, no I want my money, …..oh dear, I\’m so confused….pretty much all hail from West Warwick.

    One girl Sue, something or other, who was there, got up and spoke and said she handles her family\’s finances and yet they invested….well, I guess she wasn\’t watching too well then was she. Lots of people weren\’t doing their jobs it appears, and/or doin them well.

    Bottom line, court made a mess of things. These people (including myself) want our money and we do not have shot one while these two men sit in jail playing cards and reading books. Let me out, let me work and let them pay. Keep them under a close monitor, but why make the state pay for them, let them pay us.

  • June 2, 2006 at 1:56 am
    Time for a new leader! says:
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    This original posting is so correct.

    The elderly investors and the state made the point, however at this time, it\’s more than time to rethink the strategy here.

    The state won their case. The Investors proved their point that they were taken, even though they did sign their 5 year contracts and decided to break them and demand their monies back 4 years early.

    All that being said, let\’s get to a point where everyone can be happy. All these men want to do is make restitution. I\’d rather get .50cents on my dollar if it comes to that – I gambled, I took a shot and I lost – but, if I can lose by half rather than the whole amount, I think that far better.

    Let\’s get Bobby \”Mickey\” Michelotta where he belongs, on the golf course and out of the finance world. He\’s not the leader any of us need. We need someone who can help up and that\’s us getting back to the state and arguing a reasonable tacticle manuever and plan that allows them to pay.

  • June 3, 2006 at 6:18 am
    k says:
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    Can anyone tell me the truth here?

  • June 4, 2006 at 7:10 am
    Now I understand! says:
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    K – Now I get it, if you don\’t. Just give up because after a picture painted that clearly you never will.

    So the Judge when they have these appeals should reconsider the fact that they\’re willing to pay and let them do it. At least this Steve person, since he\’s already tried and this Tom, maybe he\’d run away and no body would ever see him again. But if he does that, then he isn\’t a burden to the taxpayers of Florida. I\’d say give it a shot.

    If I had money invested and my choice was that I could get some back or none back, you can darn well bet on which side I\’d be/ let them pay. What good and to whose benefit is it to have them in jail? No one\’s. They didn\’t kill anybody. 25 years, you have to be kidding me. That\’s such an overly prejudical over charge. What\’s up with that one. I think that judge could be brought up on sanctions.

    But let\’s not go there and start a whole new set of issues. I say let them out and let the money start to flow.

  • June 4, 2006 at 10:15 am
    S says:
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    Are these men in a facility with libraries, tennis courts, and golf courses?

  • June 4, 2006 at 3:00 am
    An Investor says:
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    Dear K, What exactly is it that you don\’t understand and why is it that you can\’t figure out the truth here? It\’s been explained and explained over and over again!

    Let me give you a brief thumbnail of this sorted scenario.

    Tom had a Ponzi scheme that he started way back in 1995 with many Investors, his target group was from the Sons of Italy mostly and ranged mostly in ages over 65.

    It was basically a pyramid scheme where he would continue to get one more investor after the other, paying their interest with each other\’s investments – paying them 12%. Who wouldn\’t have wanted 12% – that was a deal when you consider what the banks were/are paying. When these people gave him their money, they got back a piece of paper reading that 12% would be paid monthly and that the money went into the Palm Beach Financial General Fund, to be administered by him.

    However, he also spent their investments.
    Which is why he had to continue to get more people to buy in. He lived the good life for himself. He had and has a terrible gambling problem. That\’s where I believe the majority of the money went.

    He then met and befriended Steve. He had been working at his own and doing ok, but naturally was taken in by Tom\’s smooth talking and convincing ways, which he has.

    They formed a company. American Income. This company was set up with a prospectus, offering 7-8-9% interest to investors, with a 5 year entrance and a penalty if anyone withdrew early. They were supposed to purchase properties and either renovate them or rent them, but the monies was to be secured with property.

    Tom would not let Steve buy property. Anytime Steve made an attempt to make a purchase, Tom steam-rolled him and refused to let it happen. Steve did buy property, but had to wait till Tom was on a cruise to do so.

    Without Steve\’s knowledge Tom leveraged the property. The company Steve purchased the properties through, put Tom\’s name on it because he was the President of American Income.

    Steve made interest payments. Tom did nothing but take money. He had to continue to make payments to his original Palm Beach Financial Investors and he had spent the money. So, he co-mingled the money.

    When the state got wind of this, they stopped the company from doing business in November. Steve continued with his own money to make interest payments to the AI investors until he could no longer afford to in April or May.

    They were tried together, unfortunately.
    They should have been separated.
    The attorney\’s plead to the court.

    The Judge gave a lienent sentence to a man who had committed vehicular manslaughter in 2003 because restitution was made to the family of the killed child. So when sentencing was pronounced last Friday, being media shy, he gave an extremely harsh sentence to Steve and Tom.

    Tom may have deserved something strong, but not along those lines. And Steve certainly not.

    Steve and Tom are both agreeing to make restitution. The victims should get their money back, and the state shouldn\’t keep these two in jail when they\’re willing to pay.

    Now K, what is it you don\’t understand?
    I sincerely can\’t make it any more clear to you than that.

  • June 5, 2006 at 9:19 am
    and, your point is..... says:
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    Is that all you care about? Who cares?
    You MUST be one of those West Warwick monkeys!!!!!

    The point you should be realizing that is if that wherever they are, they shouldn\’t be. They should be out – working and making restitution! Instead of leaving the Investors/Victims with empty pockets.
    And they being a burden to the State of Florida when they clearly are willing not to be and to make an attempt to do the right thing.

    Time to put your thinking cap on!

    There was no victory for the victims only for Michael Rachel, the State Prosecutor, he won his case and the victims won n-o-t-h-i-n-g, got it now?

  • June 5, 2006 at 10:52 am
    You\'re so lame! says:
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    Why bother responding to someone who thinks they live in the CITY of West Warwick – glad you\’re so proud sweetie, but it\’s a freaking TOWN. Get the Charter out! Are you people up there all in-bred or what? Try and get out a little more often. Look at your tax bill, you live in the Town of West Warwick. Go figure, you\’re only catching up on two year old news today. DUH!!!!!!!

  • June 5, 2006 at 12:47 pm
    S says:
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    A simple question, gathering facts, and you call me a West Warwick \”Monkey\”!! I am positive there are many honest,kind, caring people who live in the city of West Warwick. Someone like you, with alot of opinions and no facts.
    I only found out about this situation 2 weeks ago, so I am playing catch up. But remarks like yours are uncalled for and ignored.
    Those who lost money, I definitely sympathize with, but I am not calling you names. But that only reveals your character.

  • June 5, 2006 at 3:16 am
    ashley says:
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    alot of opinions and no facts>?>> ok actually i was there in the court room and i have been kept abreast for about two years now,, I guess thats the west warwick pace,to figure things out.. are you from artic it natik?? what part do u not understand?? why dont you crawl back under your rock, or to julie vescera s bar



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