Class Says Internet Ponzi Scheme Took $1M

VENTURA, CALIF (CN) - Invest Manager defrauded hundreds of customers of more than $1 million by promising them weekly returns of 12 to 25 percent in an Internet-based Ponzi scheme, a class action claims in Superior Court.

The named plaintiff claims the defendant ran the scheme through precious metals accounts he kept with non-party E-Bullion. E-Bullion in a Panamanian company that "operates a worldwide gold based electronic currency market over the Internet," the complaint states. He said he names E-Bullion "solely because the defendants conducted their fraudulent activities in part through the mechanism of the E-Bullion system and because the proceeds of such fraud may be on deposit with E-Bullion."

He claims Invest Manager promised the investments would be secure, but, "As ultimately happens with all Ponzi schemes, however, Invest Manager ceased making payments to its investors, failed to return investments, and continues to refuse to return telephone calls from its investors."

(With 25 percent weekly returns, an investment of $10,000 would earn more than $200 million in one year.)

Plaintiffs are represented by Steven Renshaw.

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