Ponzi Scheme Preys on Elderly and Retired

September 29th, 2009
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The SEC has filed a complaint against Frank Bluestein, a stock broker in Detroit, for leading investors into a Ponzi scheme directed at the elderly. Described as the “single largest salesperson in the Ponzi scheme” operated by Edward May and his company E-M Management, Bluestein allegedly targeted the retired and elderly as potential investors and over a five-year period raised nearly $75 million from over 800 investors in E-M. The SEC reports that Bluestein conducted investment seminars through his company Maximum Financial to garner interest in E-M from new potential investors, many of whom he convinced to refinance their home mortgages.

According to the SEC report, Bluestein misled investors by marketing the investments as low-risk and withheld information about his compensation from E-M. The SEC states that Bluestein received “at least $2.4 million in commissions from May and E-M in addition to the $1.4 million in disclosed compensation he received from investor funds.” Bluestein was also negligent in investigating the offerings’ legitimacy and had not “conducted adequate due diligence with respect to the investments.”
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E-M Management
Related People: Frank Bluestein
Related Article Tags: Hedge Fund Fraud and Ponzi Scheme News

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