A recent article from Forbes provided an interesting update on a Dallas Ponzi scheme that sent William Anthony Rand and three of his sons to prison. Several rare guitars confiscated by the U.S. Marshalls Service in the Rand case were to be auctioned off in Beverly Hills on October 27th.
Heritage Auctions was to handle the sale of the rare instruments, which included two extremely rare left-handed Gibson Les Paul Sunburst guitars from 1959 and 1960. Heritage Auctions estimated before the auction that the 1959 guitar would bring in more than $125,000. Proceeds from the guitar auction will be used to pay back victims in the scam.
Rand, along with his sons, pleaded guilty in the case last year. According to prosecutors, the Rands took $68 million from 330 investors in their oil investment scheme, taking advantage of the record oil prices at the time. The Rands had allegedly promised investors extremely high returns on investments in Texas oil leases through their company, Aspen Exploration. Instead of investing the victims’ money, however, prosecutors said the Rands used it to purchase personal luxuries, including an original Picasso, the rare guitars, real estate, jewelry, boats, vehicles, and more.
Although the two Les Paul guitars were expected to be the highlight of the auction, two other left-handed guitars owned by the Rands—a 1965 Strat Sunburst and a 1959 Fender Stratocaster Hardtail—also were to be sold at the auction on October 27th.
Victims of investment scams often have to wait years to recover their investment losses, and many victims never do. If you believe you have been the victim of an investment scam, Ponzi scheme, or stockbroker misconduct, please contact an experienced securities fraud lawyer today for further guidance.