http://www.ksl.com/?sid=43926248&nid=148&title=draper-man-accused-in-ponzi-scheme-admits-to-securities-fraud

A Draper man who told investors he was a faithful member of the LDS Church has admitted to securities fraud in a plea deal with federal prosecutors.
Kelley also told investors he was a family man and a faithful member of The Church of Jesus Christ of Latter-day Saints, according to court documents.

See it all the time in Utah. LDS Inc. is the original Ponzi scheme.

There are a lot of people here in Mordor that think that a TR is a get out of jail free card. Robert Kirby wrote a story in the Tribune years ago, about the time he was a cop and had pulled over a guy for speeding. The guy showed Kirby his TR. Kirby said he took the Recommend and wrote on it: "You are hereby disfellowshipped", and handed it back to him! :-D

"There are a lot of people here in Mordor that think that a TR is a get out of jail free card."

Yes, for very valid reasons.

What do you mean by "valid reasons"??

Anybody that has lived in Utah and paid attention to the Utah legal system, especially in Utah, Davis, Cache County, knows that a TR holding white guy gets treated a lot better than Gentiles or minorities. Mormon judges, that went to BYU would give all those defendants a slap on the wrists or probation if they could get away with it. A TR in Utah is the closest thing to a "get out of jail free card."

I wonder if the perp paid tithing on the money he recycled through his racket? Oh, I know, the church was a victim of Ponzi fraud and didn't receive its money. Dallin's Boner.

I vaguely remember a case recently where victims of some scheme were trying to recover their lost assets by suing LDS Inc because the perp had been paying his tithing with the scammed funds. Don't think it worked, but any publicity about this sort of thing might further expose the whole fraud about assigning trustworthiness based on a guy's TR or title in LDS, Inc system.

Actually, this is quite common and a law suit isn't usually even required.

Since the tithing donation was a donation from the victims losses for which the church did not receive any reasonably equivalent value for the donation, the bankruptcy trustee or the appointed receiver just sends the church a letter and the church usually just refunds the documented donations. The church has to do this quite a bit.

In Utah, the law is very favorable to the trustee or receiver. As soon as it is "decided" by the bankruptcy judge or judge that appoints the receiver that the scam was a Ponzi scheme, the trustee or receiver has lots of latitude to go and claw-back (through lawsuits or threats of lawsuits) the victims losses. This especially applies to net winners, who are those victims that actually withdrew more than they put in.

So a victim may think his "account" is worth $200,000 after putting in $90,000 and collecting back $100,000 in payouts over the years. However, once the Ponzi scheme is declared, the $200,000 account is now worth $0 and this person now owes the trustee/receiver another $10,000 in the excess of withdrawals over deposits. Happens all the time and this situation is not unusual for the "early" "investors."

The trustee/receiver takes the money clawed-back from net winners and others that received the money without reasonably equivalent value (spouses, family members, churches, charities) and deducts a large amount in fees. Then the trustee/receiver distributes the remaining amounts equitably as approved by the court to the remaining victims who were net losers.

These schemes screw everyone, except for the accountants and lawyers.

I mean if someone got ill-gotten profit from the scheme as an early investor, it should be clawed-back to the extent possible.

Whether everyone is "screwed" I suppose depends on the amount of accountant and attorney's fees charged. If they're taking much more than warranted for their effort, I could see that, but the lawmakers are mostly lawyers so they are going to look out for their brothers (or even themselves).

LDS, Inc. is legitimizing some of these people, by handing out TRs and Bishop/Stake Pres/Mission Pres assignments to big donors like chicklets, and proclaiming their "worthiness" so they should perhaps be liable almost as much as the perps themselves.

numbersRus Wrote:
-------------------------------------------------------
> I vaguely remember a case recently where victims
> of some scheme were trying to recover their lost
> assets by suing LDS Inc because the perp had been
> paying his tithing with the scammed funds.

Last two paras. here:

http://www.sltrib.com/home/4291349-155/draper-man-accused-of-24m-heist?page=2

Utah is the affinity fraud capital of the world.

Well, he faithfully took their money.

There was a new family in our ward in Texas growing up. They had eight kids and bought one of the biggest, most beautiful houses in town. The father quickly became very well-respected in the ward and, when he taught Sunday School to us youth, he had the most exciting and interesting stories.

After a couple years, though, he was headed for jail for real-estate fraud. He and some other guys cheated people upwards of 12 million bucks. His poor family!

//wrong place//



Edited 1 time(s). Last edit at 04/21/2017 06:51AM by cludgie.

Having faith that the LDS church is true, doesn't do you much good, when no one has faith that you are too.

Why does this not surprise any of us? At all.

I remember when I was a kid one of the nicest guys in the ward got caught embezzling thousands of dollars from his work, never would have guessed it but as I got older I started to understand what really goes on behind the masks.

SP scammed me ten years ago. I lost my business and home and still have major debt from it. He told me, to "just file for bankruptcy." I didn't. I was not his first victim. Cult leaders knew & did nothing.

SLC is the smallest city in the nation with its own SEC fraud investigation office. It does not lack for work.

And then there is the field of nutritional supplement fraud

And MLM fraud

And yes, I think Mormonism is the root fraud that creates an enabling climate for all the others.

Brother Of Jerry Wrote:
-------------------------------------------------------
> SLC is the smallest city in the nation with its
> own SEC fraud investigation office. It does not
> lack for work.
>
> And then there is the field of nutritional
> supplement fraud
>
> And MLM fraud
>
> And yes, I think Mormonism is the root fraud that
> creates an enabling climate for all the others.


When I was a TBM members of the ward I was in regularly tried to sign me up to their various MLM's
Glad I didn't