"Legal Ponzi Scheme" May Have Taken $65 Million from Investors
Dee Allen Randall, of Kaysville, Utah, is under investigation for a potential
Ponzi scheme that allegedly took $65 million from over 700 investors. Randall, however,
claims that he was running a "legal Ponzi scheme" and was not
in the wrong. Randall filed for chapter 11 bankruptcy in December of last
year. A US bankruptcy official was the first to raise suspicions.
According to the accusations, Randall, who owns Horizon Mortgage & Investment, Horizon Financial & Insurance Group, and Horizon Auto Funding, enticed investors by offering a return of 14% by funneling investment money into other investments, such as real estate and some insurance products.
Unfortunately, it is suspected that Randall instead used cash from new investors to pay off prior investors. Many of the alleged victims had moved significant retirement savings into the scheme.
According to an attorney representing several of the allegedly wronged investors, "A lot of these people are individuals who invested self-directed IRAs or 401(k)s through [Randall's] entities and are now out their life savings, their anticipated retirement savings, and have no source of income."
A bankruptcy trustee is expected to investigate and further direct Randall's finances while the investigation is underway.
Meyer Wilson offers the knowledge and skill of experienced securities fraud lawyers, who represent victims of Utah Ponzi schemes in securities mediation, arbitration, and litigation.