Grand Jury Indicts Texas Woman in $1M Ponzi Scam
A federal grand jury has indicted Nemelee Liwanag Jiao on two wire fraud counts for allegedly running a Texas Ponzi scam that cost investors over $1M. At least 35 investors were bilked.
According to the indictment, Jiao, a Texas resident, had investors back promissory notes that were supposedly issued by two non-profit schools in the Philippines when, in reality, she was using their money on herself. Jiao told investors she represented both Lord of Peace Learning Center and Shepherd’s Light Learning Center and she got them to invest their money in the promissory notes after promising 10-100% in returns. She also promised that they would get back their principle plus interest within 30-days to a year of investing.
The indictment against Jiao stated that she will have to forfeit all proceeds if convicted. She faces up to 20 years in prison for wire fraud, as well as a $250K fine.
Ex-Financial Adviser is Convicted of Investment Adviser Fraud
A New Jersey man accused of bilking a former factor worker of his retirement funds has been convicted of wire fraud and investment adviser fraud. According to documents and evidence presented at trial, Jesse Holovacko moved the factory worker’s pension savings into an IRA and was supposed to manage the funds.
Holovacko told the worker that he would use the retirement money to buy bonds. Instead, the ex-financial adviser put the money in to his own bank account and used the funds to mortgage, car loan, and other expenses. He did this after persuading the client to move the retirement money to a bank account. The customer wrote Holovacko 18 cashier’s checks totaling $255K.
Pennsylvania Insurance Agent Enters Guilty Plea in $8.2M Promissory Note Fraud that Bilked Almost 80 People
John Hogan has pleaded guilty to multiple counts of mail fraud. The former licensed insurance agent sold life insurance polices and claimed he was a financial planner even though he lacked the proper licensing to sell investments products, as well as the certification required for investment advisers. Nearly 80 clients were bilked of $8.2M
As early as 2002, Hogan convinced clients to borrow against their insurance policies and lend funds to other clients. He promised them at least 10% returns. However, said prosecutors, what Hogan actually was doing with the money was propping up multiple investment properties that belonged to him. Because Hogan owes more on the mortgages than the actual value of most of the properties, once these properties are sold the proceeds will go to the banks and not the clients who gave him their money. One client reportedly lost $1.7M in Hogan’s promissory note scam.
At Shepherd Smith Edwards and Kantas, LTD LLP, our securities fraud law firm works with investors seeking to recoup their losses caused by investment adviser fraud, promissory note fraud, in a Ponzi scam, or other types of financial fraud. Contact us today to explore your legal options with an experienced investment fraud lawyer. Your initial case consultation is a free, no obligation session.
Feds say Irving woman used Christian schools as front for $1 million Ponzi scheme, Dallas News, April 26, 2017
Insurance NetPennsylvania Insurance Agent Pleads Guilty in $8.2M Promissory Note Scam, Insurance Journal, May 1, 2017
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