Well, in the case of Francois Durmaz and Robert Pribilski and their USA Retirement Management Services operation…
From at least January 2005 through at least December 2009, Durmaz and Pribilski used USARMS’ investors’ funds to purchase, among other things, luxury and other automobiles (over $450,000), Durmaz’ and Pribilski’s personal housing ($138,000), Durmaz’ stamp collection ($3,750), vacations, access to web-based pornography, and the cryogenic preservation ofumbilical cord stem cells.
Allegedly.
According to the SEC, Durmaz and Pribilski fleeced the elderly to the tune of $20m with a false promise to deliver these vulnerable investors annual returns of up to 11 per cent by investing indirectly in Turkish eurobonds. At least 120 victims in California and Illinois were groomed at estate planning seminars for retirees.
Allegedly.
As of Wednesday, USARMS’s half-credible website was still operational.
The SEC give us a little table of how the money was divi-ed out, the $7.7m figure being the amount returned to investors as “interest.”
Sadly, the regulator does tell us specifically how much was spent on banking human tissue. Or online porn, for that matter.
Related links:
Niche demographic or interest group? There’s a Ponzi for that – FT Alphaville
UK bosses caught up in alleged $1.2bn South African ‘Ponzi’ fraud – Telegraph
Professional athletes and their money, Ponzi edition – FT Alphaville
Another alleged Caribbean Ponzi – FT Alphaville