Miami Couple Accused of Scamming Cuban-Americans In $135 Million Ponzi Scheme
source: http://www.bvonmoney.com/2010/03/03/miami-couple-ponzi-scheme/
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The U.S. Securities and Exchange Commission has charged a well-known Miami business man and his wife with running a $135 million Ponzi scheme that used bogus real estate investments to swindle hundreds of wealthy Cuban-Americans living in South Florida.
Gaston E. Cantens and Teresita Cantens (left) were founders and co-owners of Royal West Properties Inc., a real estate development company. They solicited investors through charity events, religious gatherings and via Spanish-language television ads.
According to the SEC, the Cantens convinced investors to pour money into the couple's real estate business by promising investors returns of 9 to 16 percent annually. But when property owners defaulted on their mortgages and Royal West's business soured, the Cantens used funds from new investors to repay earlier investors and keep the business afloat – making the venture a classic Ponzi operation, the SEC says.
Moreover, the Cantens misused more than $20 million from investors to live the high life, pay themselves huge salaries, and enrich their children and grandkids, the SEC alleges.
http://www.bvonmoney.com/2010/03/03/miami-couple-ponzi-scheme/
Gaston E. Cantens and Teresita Cantens (left) were founders and co-owners of Royal West Properties Inc., a real estate development company. They solicited investors through charity events, religious gatherings and via Spanish-language television ads.
According to the SEC, the Cantens convinced investors to pour money into the couple's real estate business by promising investors returns of 9 to 16 percent annually. But when property owners defaulted on their mortgages and Royal West's business soured, the Cantens used funds from new investors to repay earlier investors and keep the business afloat – making the venture a classic Ponzi operation, the SEC says.
Moreover, the Cantens misused more than $20 million from investors to live the high life, pay themselves huge salaries, and enrich their children and grandkids, the SEC alleges.
http://www.bvonmoney.com/2010/03/03/miami-couple-ponzi-scheme/
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