Frederick Alan Voight, a Richmond, Texas man, has been charged with conducting a $114 million Ponzi scheme by the SEC. Voight allegedly defrauded 300 of his investors. Of the $114 million dollars illegally acquired, $22 million is still unaccounted for.
Using his two companies, F.A. Voight & Associates LP and Daystar Funding LP, Voight allegedly distributed promissory notes to his 300 investors under the guise of investing in cutting edge technology. In October 2014, he is accused of raising $13.8 million to supposedly fund a company named InterCore Inc., which was believed to be developing a “Driver Alertness Detection System” (DADS). The investors were allegedly promised a return as high as 42 percent a year. As one of the board members for InterCore Inc., he is accused of knowing that the company was in financial trouble and in no place to offer the investors a return.
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Voight also had two partner companies, Rhine Partners LP and Topside Partners LP, through which he allegedly funneled money into InterCore. InterCore then sent the funds to its subsidiary company, InterCore Research Canada, Inc. Once there, the money ostensibly vanished. This was allegedly never disclosed to the DADS investors.
Voight was ordered to:
- Not conduct such schemes in the future
- Have his assets frozen
- Return the stolen money with interest
- Is barred from serving as a public company officer or director
Often times, it is tempting to invest money in an endeavor that will supposedly have immediate high return. It is natural to want to believe in the vision an investor presents. However, don’t let unscrupulous investors take advantage of you.
Something to look out for when investing:
- The investor guarantees returns, especially high returns
- Missing paperwork, hidden information, etc.
- Unregistered investors
- Consistent high returns that don’t really change
If you believe you may be a victim of a Ponzi scheme, contact us today and speak to one of our securities fraud attorneys. We have recovered over $145,000,000 for our clients so far this year. Contact us for a free consultation and find out how we can help you.
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