Wednesday, March 14, 2012
Court freezes fraud assets
Man convicted of credit card fraud forced to give up luxury cars. No kidding. The guy commits massive credit card fraud and uses the fake credit cards to but luxury cars and boats. When he gets caught, the court has every right to seize his assets to repay what was stolen.
Here’s the deal: if the court can seize someone’s assets for a credit card fraud, why not for a larger investment fraud? $26 million is a lot of money but $7 billion is a huge amount of money. Right before Earl Jones jumped ship and took the money and ran in his ponzi scheme, he transferred several millions dollars of the company’s money into his wife’s name right before he went bankrupt. That’s illegal. You can’t do that right before a bankruptcy. The court has every right to seize that money and return it to the shareholders who were defrauded.
$7 billion is a huge amount of money. It didn’t just disappear. It had to go somewhere. Follow the money and seize it so it may be returned to the shareholders. That is a must in confronting the investment fraud epidemic. Jail time for a scape goat is one thing but the real players will just find another scape goat. We need to follow the money and start seizing it.