SANTA ANA, Calif. (CN) – An Orange County man defrauded a multitude of investors of tens of millions of dollars through a Ponzi scheme that targeted their retirement funds, more than 100 investors claim in Federal Court. John Anthony Miller of San Clemente, and Theodore R. Staren of San Diego allegedly promised annual returns of 10 to 18 percent on real estate, foreign currency trading, oil wells in Louisiana and Oklahoma, and start-up companies.
The 107 plaintiffs say Miller and Staren persuaded them to take their money from qualified IRA accounts and pension plans and put it into a welter of Miller’s companies: Jam Jr. Enterprises, Pacstar Group, Pacstar Alternative, Global Choice, Global Funds, Global Asset, Forte Financial, Vested Standard, and IRA Resources. All of the companies were conceived so Miller could avoid personal liability, according to the complaint.
The investors Miller and Staren did not invest their money, but spent it on themselves.
Miller used property in Oklahoma he did not own and interest in his own property as collateral in promissory notes he gave investors in exchange for “loans,” the complaint states, and Miller provided investors with fake statements reflecting investment action to keep the scheme going.
Plaintiffs demand restitution and damages for fraud, conspiracy, securities violations, negligence, and breach of duty. They are represented by William L. Buus.