Scott Bottolfson was sentenced to five years in prison today (Feb. 11) after pleading guilty to defrauding 30 investors of more than $6 million. The case was handled by the U.S. attorney's office. Between 2001 and mid-2010, Bottolfson promised investors returns of 18 to 20 percent, and falsely claimed that his Increase Investments, Inc. was regulated by the National Futures Association. Bottolfson used half the funds on himself, such as for residences and vehicles; he also admitted that he executed a Ponzi by giving previous investors money coming in from new investors.
More like this:
- Ponzi schemer Sunil Sharma gets 33 months — Sept. 14, 2015
- Folks, your Ponzi scheme will always surface — July 16, 2015
- Two More SD Specials: Ponzi, Real Estate Swindle — Sept. 22, 2011
- Beau La Madrid Could Get Ten Years for Ponzi Scheme — Jan. 3, 2011
- Did Dominelli Study Ponzi? — Nov. 4, 2009
You know what this reminds me of? The mafia. The small timers and goons low on the totem pole are the ones that do the time. Not the big boys. Same with drugs. Small time street dealers do the time. Not the higher ups who run the show.
While I'm tickled that this skunk and others like him are going to prison, stories like these leave me wondering where the prosecutorial zeal is in persuing the capos in this plundering scheme and their political enablers. We all know who they are.
You make a very good point. The Department of Justice and Securities and Exchange Commission, and smaller jurisdictions such as the San Diego District Attorney's office, in particular, are notorious for chasing the small criminals and looking the other way at the big ones. As I have explained in numerous columns, a major reason for this is that the big Wall Street law firms have so much influence at DOJ and particularly the SEC. It's the "revolving door" phenomenon. Lawyers join the agencies, learn how big-time crooks can dodge the law, and then go to work for law firms representing swindlers for millions a year in remuneration. Best, Don Bauder
As I have explained in numerous columns, a major reason for this is that the big Wall Street law firms have so much influence at DOJ and particularly the SEC.
It is not just Wall Street-it is Big Business, it runs the nation.
Big Business buys politicians, who in turn put Big Business insiders into-and at the top of- the agencies that regulate the Big Businesses industries.
It is especially true of Republican Presidents, but goes on unabated with Democrats too.
Agreed: both parties are under the thumb of big business, big finance, big money in general. Best, Don Bauder
While I'm tickled that this skunk and others like him are going to prison, stories like these leave me wondering where the prosecutorial zeal is in persuing the capos in this plundering scheme and their political enablers. We all know who they are.
=========== How many Wall Street execs went to prison over the biggest fraud our country has ever seen???
ZERO.
Madoff is in prison right now. But the big hedge fund and bank moguls have dodged prosecution. Early in the debacle, during the Bush administration, a Congressional committee had the heads of the big Wall Street firms testifying. they should have been put in handcuffs and taken off to the pokey then. But most got millions and millions in settlements and kept their five luxury homes and yachts. Best, Don Bauder
Revisiting Madoff and JP Morgan Chase, there is an excellent read today in the NY Times, in Frank Rich's column.
Rich says the now-disbanded Financial Crisis Inquiry Commission had funding equivalent to the Spider-Man musical. Issa's new committee to conduct an inquiry of the Inquiry will be lucky to have funding equivalent to San Diego's Forever Plaid.
And there's probably an analogy there, between the Forever Plaid boys and Isaa's committee. Coming back, for a second chance ... to do in this life what the anti-oversight anti-regulation Republicans never wanted to do previously...should be amusing.
One way Congressmembers have protected thieves who line pols' pockets is by denying funding to the Securities and Exchange Commission. It's going on again with the funding freeze. Best, Don Bauder
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