http://newyork.fbi.gov/dojpressrel/pressrel09/nyfo022409a.htm ...In fact, neither REED nor anyone else at OSOpps engaged in any foreign exchange trading with the funds customers had invested. Instead, REED and his co-conspirators laundered the customers' funds through numerous bank accounts controlled by REED and/or his associates in the United States, Mexico, and Latvia, and elsewhere; and withdrew customers' funds via cash withdrawals and/or checks made out to cash. The funds were then employed for personal expenses of REED and his associates, including, for example, airplane tickets for REED and his family to travel to Mexico; vehicles for the use of REED and his associates; and businesses belonging to REED and his associates in the Cancun, Mexico, area, including a night club, a shopping mall, and a gymnasium. To deceive his customers, REED, or employees working at his direction, manually altered OSOpps account statements in order to make it appear to customers that they were receiving the advertised investment returns. The scheme began to unravel in around March 2002 when an OSOpps investor unsuccessfully attempted to withdraw approximately $10 million from OSOpps accounts. Following complaints by this investor, other customers attempted to withdraw their money from OSGold and OSOpps. In response to inquiries, REED and employees working at his direction sent lulling e-mails that falsely indicated, among other things, that there were technical problems with regard to accessing OSGold/OSOpps monies and that the problems were being addressed. OSGold and OSOpps ultimately ceased operations in or about June 2002 and REED fled the United States for Mexico. Prior to their departure, REED and his wife withdrew large amounts of cash from the various accounts he controlled which he then secreted (among other ways) in duffel bags and clothing in order to transport that cash to Mexico. Millions of dollars of the investors' and depositors' money, including principal, have never been returned. No gold bullion reserves associated with OSGold have been located...
Does anyone know which night club, mall and gym we are talking about here? I saw a mobster in the park today...this place is crawling with crooks.
http://www.freezonesurvivors.to/images/cv05-0706-img0-crop025-nobates.pdf makes for interesting reading.
