Multiple Issues for Investors in Mini-Madoff Ponzi Scheme
"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."
The experienced 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.