It’s hard out there for Ponzi schemes. With the poor economy, the rush of redemptions and the growing suspicion clouding anyone whose returns are too good to be true, they’re all collapsing.
This time, it’s a man in Idaho who promised investors 25%-40% returns:
WSJ: The complaints involve Mr. Palmer, 40 years old, and Trigon Group Inc., a company with an office in Idaho Falls that investors say was owned by him. Neither Mr. Palmer nor the firm are registered as investment advisers with state securities regulators.
An Idaho Falls couple, Mark and Penny Peterson, earlier this month filed a civil suit in Bonneville County, Idaho, district court accusing Mr. Palmer and his wife of owing them $500,000 that they said he put into a hedge fund he managed. The couple alleges that the Palmers promised in July to deposit the money — payment for a tract of land they said they sold him — in the hedge fund. But they say when they tried to collect money from the account — in Trigon Group — the Palmers failed to pay them or return the property.
Mr. Taggart said he started investing with Mr. Palmer about seven years ago after hearing from other investors that the money manager was “doing very well” for them. Mr. Taggart said he was promised 25% to 40% annual dividends on his investment. He said he began by investing $100,000 and, when returns matched the promises, he continued to invest more each year.
“He just seemed so legit,” Mr. Taggart said. “He grew up in the area.”
Famous last words…
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