HOUSTON (CN) – Retired Judge Tom Hamilton claims Core Funding Group bilked him out of $400,000 in a Ponzi scheme built on using investor money to purchase legal fees from law firms and plaintiffs, and promising to pay it back with interest.
Hamilton, a former federal judge in Iowa, claims the defendant merely repays investors using money from new victims of the scam.
“As with all schemes,” the lawsuit says, “when the money runs out, as it has here, the ones hurt are the most recent marks – in this case Judge Hamilton.”
Hamilton claims Core Funding targets conservative investors by touting the plan as “safe and secure.”
The former judge is represented by Tipton Jones of Dallas.