"Mini-Madoff" in Michigan Means Multiple Ponzi Scam Issues for Investors
A Michigan man has been accused of running a
Ponzi scheme, and some people have taken to calling him a "mini-Madoff."
The man in question is Martin T. Wegener, and he is now facing federal
charges of mail fraud for the alleged investment scam.
The U.S. Securities and Exchange Commission had previously filed a civil
injunction in the case, which stated that Wegener and his companies attempted
to entice 20 investors to give up their cash - even though he was not
registered to do so as a broker or financial advisor. The current mail
fraud charges arose from Wegener allegedly sending false
account statements to investors, which served to make investors believe their cash was safe
and doing well. Instead, it is believed that Wegener was using investors'
money to pay off other investors and for his own personal use.
According to court documents, a U.S. Attorney in the case stated that:
“Wegener induced his clients to withdraw money from their retirement
accounts, investment accounts, bank accounts and from other sources on
the premise that Wegener would invest their money into legitimate investment
opportunities. However, Wegener lied about the success of Wealth Resources
LLC, and other investment opportunities that he recommended, and diverted
some of his clients’ money for his own use."
investment fraud attorneys with Meyer Wilson represent victims of investment fraud and Ponzi schemes
in mediation, arbitration, and litigation against stockbroker and financial
advisors who have done them harm.