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Democrat in Tennessee Gets Sentenced to 21 Years For Ponzi Scheme

Democrats embody the “Culture of Corruption” as Nancy Pelosi used to say but has remained silent on since for the past few years, so many democrats have been placed behind bars.  And on Wednesday, the first prosecution for a US Senator is taking place as Sen Robert Menendez goes to court over $750,000 in contributions and gifts in the biggest corruption trial since ABSCAM.  Legal experts are expecting a conviction for Menendez and Dr Melgen on bribery charges.  Dr Melgen has already been convicted on fraud charges related to Medicaid fraud.  He has not been sentenced yet.  That could mean they are waiting to see how cooperative he will be against Menendez.

73-year-old former Democratic state rep. Larry Bates was sentenced to 21 years in prison and was ordered to repay the 21 million dollars he and his family stole from 400 clients who lost everything they invested.  Many of them testified against Bates.  Bates and his family was running a Ponzi scheme using coins as the investment their clients were supposed to reap rewards from.

 Customers gave more than $87million to First American Monetary Consultants, a Colorado Corporation, for the purpose of buying and investing in precious metals.

Between 2002 and 2013 more than 360 victims lost more than $21million due to the illegal scheme.

By 2009, the company had more than $26 million dollars in unfilled orders.

Prosecutors said Bates and his family kept the money for their personal use, including commodities trading and a 10,000-square-foot house. They used more than four million to create the International Radio Network, a Christian radio network.

And as all good Ponzi schemes go, other costumers’ monies were used to fulfill prior orders that had not been fulfilled.

 Larry Laurenzi, Acting United States Attorney said:

‘Unfortunately, fraud, corruption and embezzlement can occur everywhere, including in the investment world.  People need to be mindful of this terrible fact and work hard to protect themselves and their families from those who prey on others, like the Bates family preyed on so many innocent victims.’

Bates was found guilty of all 46 counts listed in the indictment.

H/T Mail Online

 

 

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