Recovery from Mormonism

By mckay

Another one right here in central Utah, this one involves about $200 million. Nice LDS Church going father and son inviting other church members to make good money, till it failed.

http://www.sltrib.com/sltrib/money/53124909-79/investors-lawsuit-utah-in...

“A lawsuit filed Thursday by federal regulators against a father and son alleges they ran a Ponzi scheme that took in more than $200 million from about 225 investors, which would make it perhaps one of the two largest financial frauds in Utah history.
Named in the lawsuit were Wendell A. Jacobson, 58, and his son, Allen R. Jacobson, 33, both of Fountain Green in Sanpete County in central Utah, and their company, Management Solutions Inc., which served as an umbrella for other entities.”

mia
Re: Another Ponzi Scheme
I bet they both have temple recommends. probably scammed the bishop and the SP.

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mckay
Re: Another Ponzi Scheme
For those familiar with the Fountain Green, Utah area, the company offices lists the address at the large castle in the North end of Fountain Green, with the big elephant on the front lawn. We moved to near the area 17 years ago and I always wondered where all the money came from to build a castle like that in the poor county like Sanpete. Now I know.

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forbiddencokedrinker
Re: Another Ponzi Scheme
Two hundred million from 225 investors? That's almost a million an investor. Something tells me there are even more victims who are refusing to come forward, because it is all a misunderstanding and these two outstanding holders of the priesthood could not possibly be such crooks.

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summer
Re: Another Ponzi Scheme
Well, given Joseph Smith's fraud with the Kirtland Anti-Banking Society scandal, one could say that the Jacobsons were "following the prophet."

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Queen of Denial
This is so sad...
...all those people's life saving just POOF!

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Cristina
KSL just reported the guy was a bishop using his calling to get member's to invest.
I love this comment from a reader below the story online: "Please, God, give the Mormons a break on this one for a change. Please let them be Episcopalians or Methodist or Lutherans or Unitarians or something. Thank You. " Ha, ha

He;s a bishop!! The new Mormon Bernie Maddoff, just the kind of publicity "I'm a Mormon" needs.

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forbiddencokedrinker
Re: KSL just reported the guy was a bishop using his calling to get member's to invest.
See, you really can be a Mormon and not be boring.

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stationarytraveler
Wendell Jacobson was in my ward...
in Ftn. Green. He also served on the court of love when I was disfellowshipped.

He is a pompous, self-righteous ass with no compassion for his fellow man.

Now it's time to down-size. Perhaps his family can move into one of the slums he's renting out. I'm glad he got caught. Let's see if his priesthood will keep Bubba off of his backside.

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forbiddencokedrinker
Re: Wendell Jacobson was in my ward...
Doesn't he know that you have to be at least a GA before you are allowed to start swindling members out of their money. I mean, the church really hates internal competition when it comes to stealing big bucks.

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utahmonomore
Re: Another Ponzi Scheme
Somehow I'm not surprised...I always wondered HOW some of those TBM's could afford a million dollar home! They let me go without heat for over a year as they attempted in vain to get me to conform...Nah, I went without heat instead of conforming. I also never wanted to live in a million dollar home. Now we all know where their money has been coming from!

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utahmonomore
Re: Another Ponzi Scheme
Seems like LD$ inc is going down in flames like the Provo tabernacle did...a very biblical yet fitting end to the LDS church.

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Eric K
This is from the US SEC Site Dec. 15, 2011
SECURITIES AND EXCHANGE COMMISSION
LITIGATION RELEASE NO. 22195 / DECEMBER 15, 2011
SEC v. Management Solutions, Inc, Wendell A. Jacobson and Allen R. Jacobson, Case No. 2:11-cv-01165 BSJ (USDC Utah, Filed December 15, 2011).
SEC OBTAINS ASSET FREEZE AND OTHER RELIEF IN $220 MILLION OFFERING FRAUD
http://www.sec.gov/litigation/litreleases/2011/lr22195.htm?utm_medium=tw...

The following has the interesting comment: " using their memberships in the Church of Jesus Christ of Latter-Day Saints to make connections and win over the trust of prospective investors"

SECURITIES AND EXCHANGE COMMISSION
LITIGATION RELEASE NO. 22195 / DECEMBER 15, 2011
SEC v. Management Solutions, Inc, Wendell A. Jacobson and Allen R. Jacobson, Case No. 2:11-cv-01165 BSJ (USDC Utah, Filed December 15, 2011).
SEC OBTAINS ASSET FREEZE AND OTHER RELIEF IN $220 MILLION OFFERING FRAUD

On December 15, 2011, the Securities and Exchange Commission obtained a temporary restraining order and an emergency asset freeze in a $220 million real estate based offering fraud and Ponzi scheme orchestrated by Wendell A. Jacobson and Allen R. Jacobson through Management Solutions, Inc. and over 200 other entities controlled by the Jacobsons. In addition to the asset freeze, the court has appointed a receiver to preserve and marshal assets for the benefit of investors.

The complaint alleges that Wendell Jacobson and his son Allen Jacobson operate from a base in Fountain Green, Utah, and offer investors the opportunity to invest in limited liability companies (LLCs) in order to share ownership of large apartment communities in eight states. It is alleged that the Jacobsons have been soliciting investors personally and through word of mouth and appear to be using their memberships in the Church of Jesus Christ of Latter-Day Saints to make connections and win over the trust of prospective investors. The complaint further alleges the Jacobsons have been representing that they buy apartment complexes with low occupancy rates at significantly discounted prices, renovate the properties, improve their management, and aim to resell them within five years. Investors are promised they will share in the profits derived from rental income at the apartment complexes as well as the eventual sales. However, it is alleged that in reality the LLCs are suffering significant losses and the Jacobsons are merely pooling the money raised from investors into large bank accounts from which they are siphoning money to pay family expenses and the operating expenses of their various companies. They also are allegedly paying earlier investors with funds received from new investors in classic Ponzi scheme fashion.

"Recovery from Mormonism - www.exmormon.org"