Three Miami residents are accused of running a major scheme to defraud which bilked hundreds of Haitian-American investors out of approximately $14 million dollars. The Securities and Exchange Commission ("SEC") have filed complaints against Ronnie Eugene Bass, Jr., Abner Alabre and Brian Taglieri for operating a "Ponzi" scheme which promised to double investors money every 90 days. Also facing criminal charges, it is unclear if any of the men will retain private Miami criminal lawyers to defend their charges.
The three defendants have been indicted in federal court for wire fraud, securities fraud, money laundering and conspiracy. They each face 20 years in prison if convicted of the charges. A spokesman from the SEC stated that the three men targeted the Haitian-American Community promising huge returns on their investments. Bass, Alabre and Taglieri operated their scheme to defraud from April 2008 to December 2008. The scheme operated under the title of HomePals Investment Club. Bass told investors that he was a skilled in trading stock options and commodities.
HomePals collected approximately $14.3 million dollars from would be investors, however, the investigation revealed that only $1.2 million dollars of the funds were actually invested. Most of the funds collected from unsuspecting investors went to pay earlier investors. Other monies went to pay commissions to those who started new investment clubs. Despite the large sum of money taken from investors, only $668,000 of the misappropriated funds were used for personal use.
By the end of 2008, only $7,300 remained from the total procured from investors. Like in all the recent "Ponzi" scheme to defraud cases, investors will likely never see any of their money again. The defendants were detained in federal custody over the weekend with their initial bond hearings and arraignments scheduled in a Miami federal court on Wednesday, October 19, 2009. Miami criminal attorneys were appointed to represent the defendants.
The SEC accused a man in Palm Beach County in a similar case for stealing more than $23 million from Haitian-Americans. George Theodule promised his investors that he was going to create a "nation of Haitian millionaires". As the old adage says, "history repeats itself." Whenever a significant downturn in the economy strikes, "Ponzi" schemes and schemes to defraud are uncovered for two reasons. First, people do not have the financial means to continue fueling the fraud. Second, when times are tough, investors seek a return of their investment money. The problem exists because there is no money to return to the investor.
SEC: Ponzi Scheme Targeted Haitians in Fla., NJ., The Associated Press, October 18, 2009.
