Deseret News | Investigators say $59 million scheme targeted Utah County

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Investigators say $59 million scheme targeted Utah County

Greed | 10:12 p.m. Oct. 24, 2009

Greed will get you everytime. Why would you think that you would get 3-10% back each month. Utah is the capital of Ponzi schemes. Feel sorry for the people that lost money. The Lord was right when he told Joseph Smith you cannot always tell and evil person. We check the Holy Ghost at the door when we are talking with friends or fellow people and don't listen to those promptings and then when we find out we ask ourselves, "How could this happen?" It is called greed pure and simple.

A different vi ew point | 1:57 a.m. Oct. 25, 2009

Greed must be alive and well in Utah County.

Come on when someone offers you one hundred and twenty percent annual return on your money don't you think it is the least bit suspect?

It is an embassment to me that Utah county seems to be the Ponzi and multilevel capital of the world.

I guess thee is a reaon why Utah returned Bush/Cheney back to Washington with the highest approval rating in the Nation. Utah county was up there with the highest approval rating in Utah.

Government interference. | 3:38 a.m. Oct. 25, 2009

Ponzi schemes are a national crime and it has evolved because of government action to encourage all working americans to put their money in to wall street retirement accounts. Wall Street investing is also a ponzi scheme as many americans have found out the hard way, they lost it all in a matter of days.

Most american investors are illiterate with very little knowledge of the investing system. Investing is a gamble no matter how pretty and safe it may sound even if our government backs it.

Ponzi scheme investing is just a way to diverting peoples incomes in to Wall Street in very high risk ventures. The back lash is that government endorsement of ponzi scheme investing has given the american people a false sense of security to any scheme that comes along.

Before congress authorized ponzi retirement investing it was criminal to ask individuals to put their retirement in to investments. The birth of the SSA was a result of the 1930's similar schemes the robbed the american workers of their money and their retirement.

If the american people want to invest in retirement, make it tangible in savings or property.

Comments continue below

Will it ever stop? | 7:23 a.m. Oct. 25, 2009

You would think after scores of Utah County ponzi schemes over the years that people would catch on.

JMT | 7:44 a.m. Oct. 25, 2009

I am not a finacial expert, but I have some experience in this area.

Why is it that the very best and brightest, the very greediest Wall Street bankers you could ever meet - and I have - are happy to make a 10-15% return A YEAR?! If the very best and just one smidgen of an inch this side of legal only make 1%, why would anyone think they are going to make 10% a month?????

If this was so doable the only people doing it would be the Bernie Maddoff's of Wall Street. Sadly, there is no free lunch or goose that lays golden eggs. Warren Buffet has made billions 1% at a time.

In any case, I feel really bad for those loosing everything. There is a very reasonable explanation as to why Utah County is host to so many of these scams, large and small.

Where are the Watchdogs? | 8:06 a.m. Oct. 25, 2009

Why do we have state and federal agencies who are supposed to be tasked to authorize financial organizations to operate in states? They are only getting involved when the horse is out of the barn and the damage has been done. How can people title properties to dead people? How can 4 year olds purchase properties? I think we ought to completely reorganize the state and federal government watchdog organizations. Fanny Mae and Freddy Mac and all this phoney baloney that has put our country on the brink of financial disaster. I still blame gullible would be investors for getting sucked into get rich quick schemes. These people who hoodwink investors with ponzi schemes should be put away for minimums of 25 to 50 years with no parole possible. Chris Dodd, Barney Frank, Nancy Pelosi and Harry Reid are part of the problem as well. Don't we have the legal apparatus to deal with these crooks in the case of the ponzi schemes before they set up for business? We need a complete analysis of the laws and authorities in financial matters in this state. There has to be a reason that Utah is among the worst.

Anonymous | 8:06 a.m. Oct. 25, 2009

PT Barnum said it best.

Disgusting | 8:24 a.m. Oct. 25, 2009

What is wrong with people?

How can you steal someone's money like that? And how can you be dumb enough to think 3-10% per month is actually going to come your way?

Emotionality | 9:27 a.m. Oct. 25, 2009

This type of thing is a problem over and over if you put faith in feelings. The allure of making big money is most always a big uplifting rush of emotion.

Study things out for yourself, do NOT take other peoples word as reliable truth. If something does not make sense or seems too good to be true... THERE IS A REASON!

no simpathy | 9:34 a.m. Oct. 25, 2009

I have no simpathy for people who sought to get rich or make money off the back of the poor by investing in what they though were "payday loans".

Not to be rude....but | 9:48 a.m. Oct. 25, 2009

Ponzi schemes are a horrible thing, but its hard to feel bad for people that are so greedy (and stupid) that they invest in these things. The general rule is that the higher the return the more risky the investment, and if someone offers you a guaranteed return of 10% a month then it's guaranteed to be a scam or, at a minimum, an extremely risky investment.

wow...mr. government interference, your comparison between ponzi schemes and wallstreet isn't even close. If anyone's illiterate about investing it is you. Even if your comparison were right, if everyone put their retirement in savings then the banks would just dump it back into wallstreet. If everyone put it in property then property values would be hyper-inflated. The key is diversification. If you were too heavily in one thing or another you probably got burned. Even if you were in a Ponzi scheme, if you diversified your portfolio then you'd have only lost a small fraction of your investments.

Cats | 9:50 a.m. Oct. 25, 2009

Government Interference and a different view......I have a really important question for both of you...HUH!!!!!!!

The mind is a really strange thing!!!!

Jim | 10:10 a.m. Oct. 25, 2009

Wall Street a ponzi scheme? sounds like you got greedy with your Investments! I know many people who have made money on their 401(K)and IRAs with DIVERSIFIED Mutual Funds AND other sound Investments. quit listening Glen Beck so much. If I would have listened to him in March I would have missed out on a 52% return on my money!

Anonymous | 10:15 a.m. Oct. 25, 2009

As a Financial Advisor, I do not feel sorry for people who believe in a 100% return and lose all their money. It amazing! A fool and his money are soon parted.

re: government interference | 10:25 a.m. Oct. 25, 2009

You should go and research what a Ponzi scheme is.

Greedy or Greedest | 10:44 a.m. Oct. 25, 2009

Who are the real greedy here?...not just the crooks...it is greed based investing. The folks have to know that when there is high return there must be high risk, yet they choose to do it anyway. Still, greed is at the heart of the crook and investor.

A few Rules | 11:59 a.m. Oct. 25, 2009

It is sad to see people taken advantage of, and sad to see yet another Ponzi Scheme dupe so many people of so much money. I offer a few rules to remember to avoid getting ripped off.

1. If it sounds to be good true it is.

2. If a friend, coworker, family member, or someone from church offers you a fabulous investment run the other way.

3. If someone offers a zero risk guaranteed return on investment don't invest. There is not, nor has there ever been such a thing.

4. Don't put all your eggs in one basket. Diversify what you invest in. Even the most seemingly safe investments could turn out to be frauds. If you have invested in many different areas it protects from the possibility of losing your life savings if you pick one bad apple.

5. I'm barely scratching the surface here. Think about what you invest in, educate yourself, and keep your eyes open.

Anonymous | 12:44 p.m. Oct. 25, 2009

Don't use church affiliation as a indicator that an investment is legitimate. People are often coned by church members who "lay in wait to deceive". It wasn't that long ago that a member of the First Council of the Seventy was associated with an investment scheme. Remember all the general authorities that were on board with Mark Hoffman and investing in his phony materials. Just because a person goes to church doesn't mean he can't be deceived or deceive. Do research and let the old noggin think it through.

S. Blaser | 12:56 p.m. Oct. 25, 2009

Don't judge a financial planner by his church affiliation. This is why white collar crime is so rampant in Utah. All some people need to hear is that someone is a bishop, stake president or some other title. That means nothing to me. I know of a man in Bountiful Utah who conned another person out of a family business and farm selling him investments that weren't legitimate. This financial guru who marketed the investments had been a bishop.

Anonymous | 1:24 p.m. Oct. 25, 2009

sTEVE bLASER WAS THE NAME OF THE CON MAN IN THE ABOVE MENTIONED BLOG. hE HAS BEEN OPERATING UNDER THE RADAR FOR YEARS AND i WANT PEOPLE TO KNOW WHAT A WOLF HE REALLY IS. hE LIVES IN bOUNTIFUL uTAH.

Re:S. Blaser | 12:56 p.m. Oct. 2 | 1:33 p.m. Oct. 25, 2009

Agreed. If Church comes up in any conversation you are having about an Investment that you didn't start run fast the other way.

TEX | 1:55 p.m. Oct. 25, 2009

If anyone in Utah starts any sales or investment pitch with the phrase "Brother,...." put your hand in your back pocket and hold on to your wallet.

whats the church | 1:59 p.m. Oct. 25, 2009

got to do with this ...i thought it had no political , aspiratical bearing on the earthling thing but here in utah they will do a brother in with out a break...makes me wonder for sure!

Anonymous | 2:06 p.m. Oct. 25, 2009

I would guard against investing in some scheme just because a BYU professor thinks it is legitimate. Several years ago I invested in a limited partnership called E>M>I> which turned out to be a very bad investment. At the time several BYU professors were raving about its potential and it just didn't turn out to be very profitable.

Cougar Blue | 2:29 p.m. Oct. 25, 2009

And I wonder how many of these investors and those recruiting new ones as well as those at the top have a current temple recommend. Just wondering! And yet we are so quick to heap scorn on those who don't believe just as we do. You know, the Lord must really "wonder" sometimes---I mean oftimes.

Learned by watching | 2:40 p.m. Oct. 25, 2009

A long time ago, a member of my church invited me to get a second mortgage on my house and invest it in some company that promised a fantastic return each month.

I wasn't very astute in financial matters, but I had a feeling the investment was spooky.

I didn invest. He did. He ended up paying off his second mortgage for a number of years when his investment went south in someone's pocket.

That taught me a valuable lesson. Never, ever think someone is willing to give you a huge return on an investment. In truth, the huge return is your money in their pocket.

But those who receive seem to really appreciate your generosity.

Why not just send the money to me? I promise to accept it without any lies about where is is being invested. It will be in my retirement fund.

Anonymous | 4:12 p.m. Oct. 25, 2009

When Pres. Monson was an apostle, he warned us not to take seconds on our houses. Two years in a row. We need to listen to our prophet and apostles...they are wise and do warn us. It is tragic to lose one's home, one's dignity, one's life savings to these crooks. Bankruptcies galore. Our country is in big trouble, we shouldn't be. Get out of debt...buy grains, salt, sugar, beans. I don't want to be in a bread line waiting for a bowl of soup and a slice of bread.

jzzfan | 4:19 p.m. Oct. 25, 2009

So 59 million dollars have been lost and they are not having someone track the money. Why don't they follow the money, and report back to what they find. Why is Deseret News writing an article when there has not even been any criminal charges filed yet. Wow. They are basing their story on Hear Say. No wonder why people are so upset with the press and the fringe media. Wait for charges to be filed and discovery to be made before running a story. Stop acting like the Main Stream Media, and find some TRUTHS before you report.

Greed has a price | 4:53 p.m. Oct. 25, 2009

These people were willing to risk their money because they thought it would be used to extract every last dime out of poor people who become dependent on payday loans.

I think it's poetic justice.

Anonymous | 6:47 p.m. Oct. 25, 2009

yeah sure, blame the press jzzfan...these frauds are still happening there in Utah? Horrible for the people caught up in them and losing soo much money.

Not all about greed | 9:49 p.m. Oct. 25, 2009

You can't go off accusing the victims of ponzi schemes as greedy! Sure, that is true of some investors, but a large majority of victims are the result of ignorance. They don't know what they are getting into and to them the returns sound good. These people may have been in desperate need of money and thought that their investments would lead to a better income for their families.

How cruel it is to kick these suffering victims while they are down by automatically assuming that it was greed that caused their loss! I feel terrible about their misfortune and I am certainly not going to rat on them for their mistakes.

Ponzi schemes are underhanded and wrong. Those that head these schemes are some of the worst criminals. They give empty and misleading promises that ensnare the best of people. These are the greedy. These are the truly wicked. How anyone can miss that fact and point their fingers solely at the victims I'll never understand. Where is the heart in Utah? How can you people have no sympathy for suffering?

zip | 11:25 p.m. Oct. 25, 2009

I think that "Not all about greed" has some very good points. I know some families with many children and not much money who got into one of these, hoping that it would ease the family budget crunch. I also know some elderly who thought it would be better for their retirement. The man at the top is usually if not always a sociopath who has no feelings or compassion for those he ruins as long as he gets the high from getting the money. He lives high on the hog with no concern for the devastation he leaves behind.

Anonymous | 8:17 a.m. Oct. 26, 2009

Mormons preying on Mormons. Pretty sad.

Hugh | 8:49 a.m. Oct. 26, 2009

For greedy dishonest religious people gold is god.

freecaptilist | 9:20 a.m. Oct. 26, 2009

I was also a victim in this ordeal. I understood that this was a risk when I was being paid back the 10% a month. I was happy when I was receiving the returns every month but I don't put the blame on others when it stopped. I knew what I was getting into to with that rate of RETURN. The Payday Loan industry is a big industry and this Company had been around since 2002. Was it REALLY a Ponzi Scheme or was the Company MIS-MANAGED? How and why has this turned into a religious fight. The Main Company is based out of California with no ties to the Mormon faith. A lot of the investors were out of California, and Arizona. This comes down to The Utah County Attorney wanting to get his name out there so they are jumping into the rough waters without know the Facts or Truths. I hope they do the smart thing and try to follow the Money, instead of wasting Tax payers dollars going after a small piece instead of the whole pie.

soakblue | 9:43 a.m. Oct. 26, 2009

sick.

The other side ?? | 11:07 a.m. Oct. 26, 2009

While I think you are foolish to be expecting 10% per month, a certain well known bank renewed a 90 day CD at .80% . I think everyone would be beeter off if some were not so greedy.

one more caution | 4:29 p.m. Oct. 26, 2009

There are two other claims made by fraudsters I've often heard:

1) This is how the big money guys make the bucks. (Now you as a little guy can prosper like daddy warbucks)

Or

2)This is too small for big investors. They only want in on big deals. So it is perfect for the little guy.

What a crock! I've hung out with big investors for years. A good investment is a good investment and a bad one is a bad one, regardless of its size.

Anonymous | 5:21 p.m. Oct. 26, 2009

We were burned when my husband's boss took the funds that were deducted out of hubby's paycheck, earmarked for retirement account and pocketed the money. We weren't being greedy. Just in the wrong place at the wrong time. We were alerted to the problem by another coworker. We trusted this boss. Eventually he went to prison.

Ha ha ha | 11:02 a.m. Oct. 28, 2009

Free capitalist sounds like they are smoking a little crack on the side of all their investment deals.

Dan | 11:30 a.m. Nov. 10, 2009

I think this paper is not reporting the real news on this story....How could it be a ponzi scheme if Gail still has 4 brick and mortor branches that she is working and earning money from. This paper consistantly reports the news in a bubble..."Dont want our members to know the real news of the world it might make them smarter and not buy our paper." Shame on Deseret News...Your organization should not have the title of News Agency.

Anonymous | 5:49 p.m. Nov. 14, 2009

It is so so sad. I hope the middlemen in all of this will serve jail time as well.

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Jason Olson, Deseret News

At his home in Orem on Oct. 21, Robert Clark talks about the losses he suffered as one of the victims of an alleged Ponzi scheme that largely targeted Utah County residents.