Nine more firms may be involved in Ponzi scheme
By Nicholas Charalambous
Independent-Mail
2/15/00
An investigation into a Seneca-based Ponzi scheme that prosecutors say bilked investors of $52 million was expanded Monday to include another nine companies that may also have sold bogus investments.
In a hearing in federal court in Anderson, investigators obtained a court order to examine the financial records of the newly discovered trusts, which they said had been next in line to sell bonds before the operation was shut down in January.
Virgil Womack, 59, of Seneca is accused of masterminding the scheme to sell high-yield U.S. government securities and property to at least 1,275 investors across the United States under the names Alliance Trust, Chemical Trust and Merritt-Pierce Trust. Prosecutors say money from new investors was used to pay a small "return" to old investors without any investment being made.
Greenville attorney Beattie Ashmore, who was appointed by the court to seize assets associated with the scheme, said Mr. Womack now also is linked to Cardinal Trust, Carver Trust, Continental Trust, Hampton Trust, Heart-Land Trust, Hersheys Trust, Three Rivers Trust and United Marketing Trust.
Mr. Ashmore said $10,000 in bonds were sold through one of the new trusts, but further investigation may turn up more.
About $25 million of the $52 million has been recovered so far from domestic and offshore bank accounts, he said.
Mr. Womack, along with his wife, Charlotte, 51, also of Seneca and her brother Clifton Wilkinson, 43, of Toccoa, Ga., are charged with conspiracy, wire fraud, mail fraud and money laundering. Mr. Wilkinson was former Stephens County, Ga., administrator.
Mr. Wilkinson's wife, Crystal Wilkinson, 36, also of Toccoa, pleaded guilty to conspiracy in January and is awaiting sentencing. Alvin A. Tang of Scottsdale, Ariz., pleaded guilty to conspiracy last Monday for setting up a shell corporation to guarantee the investments. He also is waiting to be sentenced.
andersonsc.com
Here's the archive search for the Anderson, S.C. newspaper where I found these two stories:
andersonsc.com |
