November 7, 2007
SEC Obtains Consent Judgment in Ponzi Scheme
I have to confess -- Ponzi schemes fascinate me, and here's another outrageous one -- The SEC announced today that a federal district court for the Northern District of Georgia, entered judgments as to defendants Bryant E. Behrmann (Behrmann) and Larry "Buck" E. Hunter (Hunter), enjoining them from future securities law violations. The SEC charged that, since at least October 2005, Global, Behrmann and Hunter have orchestrated a massive Ponzi scheme and conducted an unregistered offering of securities through Global's SPIP. Global, Behrmann and Hunter solicited investors to "loan" Global funds for a term of one year in exchange for promised daily interest payments. Depending on the amount invested, Global promised effective annual returns of more than 1,800%. Global purported to generate revenue sufficient to pay investors their promised returns by pooling investor proceeds to purchase distressed inventory, which Global then claimed to resell through various online auction websites, including Ebay and Yahoo!Auctions, as well as through flea markets, street sales and retail storefronts. From October 2005 through March 2007, Global raised approximately $45 million from more than 9,000 investors. The defendants consented to the entries of the judgments without admitting or denying any of the allegations of the Commission's Amended Complaint.
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