DENVER (CN) - Merendon Mining defrauded investors of $100 million in an international scam that is "rapidly collapsing," and the scammers are still siphoning money from the companies, seven investors say in Federal Court.
"The Institute for Financial Learning, Group of Companies, Inc., Merendon Mining (Nevada), Inc., and Merendon Mining (Colorado), Inc., are part of a massive international financial scam which operates in Canada, the United States and many other foreign countries," the complaint states. "Unsuspecting investors are recruited by authorized representatives who commonly refer to themselves as 'structurists' and are, in essence, nothing more than paid brokers. Although the exact numbers are not currently known, this scam has raised well over $100 million from thousands of investors through fraud and deception. Criminal and regulatory authorities in both Canada and the United States are investigating this financial scam, and, now that the fraud is being exposed, the enterprise is rapidly collapsing. The principals of the scam are and have been diverting investor funds. The need for the appointment of a receiver is real and immediate."
Victims of the scam allegedly pay $2,000 for the right to get the defendants' advice. Then, "Investors are encouraged to invest in what they are told are highly successful operating companies with proven assets - usually precious metal reserves and mining operations - which, in actuality, do not exist."
The Institute for Financial Learning is run by Milo Brost, of Canada, with a bunch of cronies, the complaint states. They claim to own mines and precious metal reserves, but own none of it, the plaintiffs say.
Plaintiffs are represented by Andrew Petri with Featherstone Petrie DeSisto.
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