HomePals not so Friendly to Investors; Three Indicted in Ponzi Scheme
| October 20th, 2009 | ||
| The SEC has charged Ronnie Eugene Bass, Jr., Abner Alabre, and Brian J. Taglieri with fraud for operating a Ponzi scheme through their companies HomePals Investment Club and HomePals. The three South Florida residents are reported to have raised at least $14.3 million from April to December of 2008 from a community of Haitian-Americans living in Florida and New Jersey, with Mr. Bass “selling unsecured notes and promising to double investors’ money every 90 days,” according to an SEC press release. Only $1.2 million of the $14.3 million was actually traded; the bulk of the investments were misappropriated to repay previous investors and finance child support and the purchases of homes and cars for the three defendants. The $1.2 million that Mr. Bass did trade generated losses of almost 20%. The SEC further alleges that the three men formed investment clubs whose presidents were “offered and paid commissions as a reward for bringing in additional investors” to finance HomePals. While he has not admitted or denied the allegations, Mr. Taglieri has settled the SEC’s charges. The U.S. Attorney’s office for the Southern District of Florida has also indicted all three men and is charging them with “securities fraud, conspiracy to commit securities fraud, wire fraud and money laundering.” | ||
For Detailed Investor Profiles on these Investors, click below: |
HomePals |
Related People: Abner Alabre;
Related Article Tags: Hedge Fund Fraud and Ponzi Scheme News
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Hall of Fraud Top 10
Firm | Assets* |
Madoff Investments LLC | 64,800 |
Stanford Financial Group | 8,000 |
Petters Group Worldwide | 3,500 |
Frankel International & Frankel Chemical | 1,200 |
Satyam Computer Services | 1,000 |
Westgate Capital Management, LLC | 900 |
Capitol Investments USA, Inc | 900 |
Dreier LLP | 700 |
WG Trading Co | 554 |
Weavering Capital | 500 |
*Estimate of alleged Fraud/Investor Losses ($MM) | |
