Almost none of the investor funds went to Cash 4 Titles or to any other company engaged in providing 'car title loans' or making 'payroll check advances'.  Instead, he used some of the money to pay off previous investors but transferred the bulk of it to an offshore account at the Bank of Bermuda.

Prosecutors are seeking the forfeiture of more than $25 million that he earned off the scheme, along with titles to his homes. They also seek forfeiture of the title and interest he held in a commercial aviation company.

A settlement between the Bank of Bermuda and victims of the Cayman-based Ponzi scheme  received approval of the courts 10/12/01.

While continuing to deny liability, the settlement agreement provides for a payment of up to 50% of actual out of pocket losses to investors in Cash 4 Titles, although the total payment, including all court approved fees and expenses, is not to exceed $67.5 million.” 

Ponzi schemes really are crimes of persuasion and those who promote them can be called sneaky snakes. That is what they are.

The people who are duped into investing in such schemes aren’t in any way planning to cheat of profit from another’s misfortune. The investors are not criminals; they are victims.

A Ponzi scheme is comparable to pyramid scheme. You might even call it a very, very elaborate pyramid scheme.

Pyramid schemes aren’t a new con game that was thought up by the sneaky snakes of the Internet. Pyramid schemes can be traced back to the 1950’s when chain letters became very popular. You see rather harmless versions of pyramid schemes in your inbox occasionally. These emails will tell you that if you don’t pass the email along to 10 or so of your closest friends, terrible things will happen to you but there is rarely any money involved.

The kind of pyramids that involve large sums of money are no longer sent through the USPS because they are very illegal and land those who send them in jail and have heavy fines levied against them.

Even if it wasn’t illegal, it would be difficult to find enough people now days that would be willing to participate in such an obvious pyramid scheme. The public did finally become educated about pyramid schemes but that only served to make those who perpetrate them become better able to disguise them.

A real pyramid scheme never involves a real product. It involves money...not things...much like a Ponzi scheme.

Many MLM schemes are also much like a Ponzi scheme or a pyramid scheme except that there is usually a product involved in an MLM (Multi-Level Marketing) scheme.

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