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Investment Fraudster Defrauds Over 200 Out Of $14 Million

Amanda Miller — Mon, 23 Jan 2012 20:02:12 +0000

Bradley Stark, the fraudster defendant who represented himself at trail was convicted by a federal jury for deceiving investors about an investment scheme that involved more than 200 victims and more than $14 million.

Following Stark’s five-day trial he has been convicted on all counts of an indictment charging him with seven counts of wire fraud and one count of securities fraud related to his fraudulent securities offerings.

The government presented evidence at trial that Stark incorporated Sardaukar Holdings as an international business corporation in the British Virgin Islands, to engage in the business of investing and managing clients’ financial assets. From October 2004 thorough early July 2005, Stark operated Sardaukar from his residence in Riverside, California.

Stark used materially false and fraudulent representations to solicit individuals to invest in Sardaukar. For example, according to evidence presented at trial, he represented to investors, and encouraged and allowed others to represent to investors, that:

he had previous institutional trading experience;
that he was a registered securities broker or dealer;
he had hundreds of millions of dollars in investments from private and institutional clients;
he would invest the investor’s funds in sophisticated financial transactions, including tri-party repurchase agreements, commodities futures and currency trading;
historically, investments in Sardaukar had yielded high rates of return, often more than 20 to 30 percent per month; and
for $50,000 investors could purchase an insurance contract through him that would insure invested principal against any loss.

Stark also knowingly and intentionally failed to advise investors that he had been convicted in April 2003 of a federal felony offense, uttering a false and counterfeit security, and in May 2003 in the State of Colorado, of fraud by check.

In addition, the government presented evidence at trial that Stark squandered the majority of investor funds on luxury cars, travel/entertainment and jewelry. He also transferred more than $1 million to his wife.

Based on Stark’s representations, several individuals in the NDTX entered into agreements to provide funds to him for investment. These individuals in turn, using many of the false representations Stark had made to them, raised money from investors in the NDTX and elsewhere, which was sent to Stark for investment.

The largest investor in Sardaukar Holdings was a company in the Dallas area, Megafund Corporation, which was run by Stanley Leitner. Leitner, who testified for the government at trial, was previously convicted in the NDTX of wire fraud, securities fraud and money laundering, in connection with his operation of Megafund, and is currently serving a 210-month federal prison sentence.

Each of the wire fraud counts carries a statutory maximum sentence of 20 years in prison and a $250,000 fine; the securities fraud count carries a maximum statutory sentence of five years in prison and a $250,000 fine – Source.

If you have been scammed and would like to file a scam report, please click here.

Friday The 13th: Unlucky For Fraudsters, Lucky For Potential Victims

Amanda Miller — Mon, 16 Jan 2012 20:48:50 +0000

From How to Get Out of Debt

Those that are superstitious often view Friday the 13th as an unlucky day. This past friday, January 13th, members of an identity theft ring received some unlucky news when they were sentenced to prison. Contrary to superstition, this was a very lucky day for future victims that could have fallen into their web of lies and deceit.

Two men, Richard Gaylon Conaster and Geoffrey Michael Wentzel, along with other conspirators were sentenced to prison after using personal information of dozens of victims to obtain fraudulent credit cards. Conaster and Wentzel both previously pleaded guilty to one count of conspiracy to commit wire fraud and one count of aggravated identity theft and were charged with 124 and 65 months without parole, respectively.

Officers with the Houston Police Department (HPD) arrested Conatser and Wentzel at Wentzel’s home in October of 2010. Officers had recognized Conatser from the surveillance video of a Best Buy, where items had been purchased using a credit card obtained in the name of a victim.

At the home, police seized multiple laptop computers, flash drives, laminating machines, credit card magnet readers and other equipment used to make fraudulent forms of identification. Police also discovered the personal identification information of dozens of victims on the laptop computer and in credit applications from Kingwood Air Conditioning & Heating, which were also seized during a search of Wentzel’s house. Wentzel is a former employee of Kingwood Air Conditioning & Heating.

Conatser and Wentzel used the personal information and fraudulent forms of identification to open credit accounts in the names of at least 45 different individuals at more than a dozen different retail stores in the Houston and Dallas areas, including Kohls, Sears, Dillard’s, Home Depot and Bass Pro Shops.

After being approved for credit in the victims’ names, Conatser, Bird and other conspirators purchased thousands of dollars of merchandise, often being captured on video surveillance in the process. In some cases, Conatser then sold the fraudulently-purchased items to Wentzel, who in turn sold the items within days using his eBay account.

Law enforcement agents connected Conatser and Wentzel to Bird, who was previously arrested in July of 2010, during a traffic stop in Coppell, Texas. Police in Coppell discovered several items related to identity theft in Bird’s vehicle and a hotel room where Bird and other conspirators were staying. Among the items discovered by police were fraudulent identifications and other person information belonging to victims whose information was later discovered at Wentzel’s home.

In addition to their sentences, the two men were ordered to serve supervised release terms of three years following their release from federal prison. They were also ordered to pay restitution to victims totaling $142,197.88 – Source.

If you have been scammed and would like to file a scam report, please click here.

Your financial questions answered – Dallas Morning News

Steve Rhode — Wed, 22 Oct 2008 20:40:00 +0000

From How to Get Out of Debt

If you’re worried about your finances in these tough economic times, we can help. We’ve teamed up with the Dallas-Fort Worth Financial Planning Association to offer free financial advice. Just e-mail your question to moneyhelp@dallasnews.com . We …

Source: Your financial questions answered – Dallas Morning News

Still Stormy? – Fort Worth Weekly

Steve Rhode — Wed, 22 Oct 2008 18:24:00 +0000

From How to Get Out of Debt

Texas Ballet Theater may be down financially, but it isn’t out artistically. Last weekend’s performances of Mozart’s Requiem and Stormy Weather at Bass Performance Hall showed the group to be in better shape than ever. One of the joys of …

Source: Still Stormy? – Fort Worth Weekly

How to Get Out of Debt With the Get Out of Debt Guy » dallas

Investment Fraudster Defrauds Over 200 Out Of $14 Million

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