The New Hampshire Secretary of State has announced that hearings will begin
next week to investigate the state’s potentially largest
Ponzi scheme. According to reports, on Tuesday, October 5, 2010, the perpetrators pleaded
guilty for their involvement in the investment scam.
Scott Farah, 46, and Donald Dodge have pleaded guilty before U.S. District
Court Judge Paul Barbaboro for their participation in an investment scam
that involved more than 150 investors and nearly $20 million. Mr. Farah
was charged with one count of federal wire fraud and one count of mail
fraud, while Mr. Dodge faces one count of federal wire fraud.
The duo apparently ran the investment scam from 1989-2009, which was orchestrated
by Mr. Farah’s company, Financial Resources Mortgage Inc., and Mr.
Dodge’s company, CL&M Inc.
The new hearings are designed to determine how the state of New Hampshire
could have better protected the victims. A Kitty Point, Maine, couple,
who were victims of the Ponzi scheme, claim that they were emotionally
and financially ruined after investing in the scam, but are thankful for
the hearings. They lost an estimated $1 million.
Mr. Farah’s sentencing hearing has been scheduled for January 19,
2010. According to his plea agreement, Mr. Farah is expected to receive
a 16- to 20-year federal prison sentence for his involvement.