![]() That’s just seven fewer than securities regulators filed in 2009. Last year, for instance, the Securities and Exchange Commission brought 47 enforcement actions against the architects of apparent Ponzi schemes. Unfortunately, yield-hungry investors have been slow to grasp that if an investment opportunity sounds too good to be true - it probably is. Nearly two-and-a-half years after Madoff’s decades long investment fraud came to light and prosecutors charged Allen Stanford with running a $7 billion Ponzi scheme, there has hardly been a pause in the number of new dubious investment schemes. It appears Parlin’s due diligence was not complete.īut some securities experts are not surprised. He’s also suing New York financier Vassilis Morfopoulos, who transferred the foundation’s money to Gilliams. Worse, Parlin says he didn’t even know the money had been passed on to Gilliams to manage until shortly before he filed the lawsuit. Treasuries, where the current yield on a 10-year T-bill is 3.2 percent. And it was an investment strategy using U.S. ![]() He was promised, according to court papers, a five percent a week return - the kind of performance that would make even Ponzi king Bernard Madoff blush. On its face, the investment venture that Parlin sunk some of his foundation’s money into seems dubious. Posing with stacks of money on his lap, he bills himself as a mogul, a philanthropist and a self-starter.īut now one of his investors is crying foul, suing the Camden, New Jersey, native and Ivy League graduate for fraud.ĭavid Parlin, a businessman from Cincinnati, Ohio, claims Gilliams misappropriated much of his private foundation’s $4 million investment and used the money to pay for trips to the Bahamas, outings at Miami nightclubs and shopping sprees at Saks Fifth Avenue and a Cherry Hill, New Jersey Mercedes Benz dealership. In a promotional video for a celebrity-studded charity event last December - among the headliners was rapper Sean “Diddy” Combs - Gilliams mugs for the camera. arrives on the red carpet at the Joy to the World Fest Gala in Philadelphia, December 19, 2010. ![]()
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