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Investment Scam Could Be New Hampshire's Biggest Ponzi Scheme

The New Hampshire Secretary of State has announced that hearings will begin next week to investigate the state’s potentially largest Ponzi scheme. According to reports, on Tuesday, October 5, 2010, the perpetrators pleaded guilty for their involvement in the investment scam. Scott Farah, 46, and Donald Dodge have pleaded guilty before U.S. District Court Judge Paul Barbaboro for their participation in an investment scam that involved more than 150 investors and nearly $20 million. Mr. Farah was charged with one count of federal wire fraud and one count of mail fraud, while Mr. Dodge faces one count of federal wire fraud.The duo apparently ran the investment scam from 1989-2009, which was orchestrated by Mr. Farah’s company, Financial Resources Mortgage Inc., and Mr. Dodge’s company, CL&M Inc. The new hearings are designed to determine how the state of New Hampshire could have better protected the victims. A Kitty Point, Maine, couple, who were victims of the Ponzi scheme, claim that they were emotionally and financially ruined after investing in the scam, but are thankful for the hearings. They lost an estimated $1 million. Mr. Farah’s sentencing hearing has been scheduled for January 19, 2010. According to his plea agreement, Mr. Farah is expected to receive a 16- to 20-year federal prison sentence for his involvement.

The information contained in The Firm’s posts on its blog, fraud alerts, investigations or elsewhere on the site is based upon information obtained from other sources including, but not limited to, news outlets and federal, state, and regulatory agency filings. All suspects and subjects of postings herein are presumed innocent until proven guilty in a court of law or administrative action and any and all crimes are alleged until a court or regulatory agency finds otherwise .

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