“Retired bus drivers lose everything in Ponzi scheme” discussed securities fraudster Thomas Mitchell who just pleaded guilty to violating 18 U.S.C. § 1341. (Mail Fraud).  Mr. Mitchell asserted at page 8 of his plea agreement that he induced over 150 victims to invest their retirement monies in a Ponzi scheme:

(For Hi-Res Click On the Plea Agreement)

According to his plea agreement and / or criminal information, Mr. Mitchell facilitated the Ponzi scheme by misusing: promissory notes; a trust; his financial investment firm; and a Nevada company established in 1998.  Even though Mr. Mitchell has agreed to pay $7.1 to $9 million in restitution to the victims of his scheme, it is not yet known whether this will actually happen.

Governmental or other authorities might therefore still have to search for Mr. Mitchell’s assets, for these victims to have any real chance at an asset recovery.  Such a search would conceivably rely on subpoenas, computer forensics, etc., as described by “Interdicting A Ponzi Schemer’s Assets“.  “Secreting Assets Without A Border Trace” additionally explained that an investigation of a Ponzi schemer can “…concentrate on foreign hotels, payment information, telephone records and on credit card expenses for details of physical movements and life style.”

Copyright 2011 Fred L. Abrams