{"id":16725,"date":"2015-10-22T16:24:35","date_gmt":"2015-10-22T23:24:35","guid":{"rendered":"https:\/\/cjnotebook.com\/?p=16725"},"modified":"2015-10-22T16:24:35","modified_gmt":"2015-10-22T23:24:35","slug":"nevada-man-sentenced-to-more-than-12-years-for-running-a-10-million-ponzi-scheme","status":"publish","type":"post","link":"https:\/\/cjnotebook.com\/?p=16725","title":{"rendered":"Nevada Man Sentenced to More Than 12 Years for Running a $10 Million Ponzi Scheme"},"content":{"rendered":"

LOS ANGELES<\/h2>\n
\n

\"U.S.<\/a>A federal judge today sentenced the architect of a fraudulent investment scheme that caused scores of victims to suffer losses of nearly $10 million to 12 years and seven months in federal prison for running a Ponzi scheme and lying to the Securities and Exchange Commission,<\/strong> officials announced<\/span><\/p>\n

U.S.District Judge John A. Kronstadt<\/strong> sentenced Gordon Driver<\/strong>, 58, of Henderson, Nevada and ordered him to pay nearly $10 million\u00a0in restitution to victims of his scheme.<\/span><\/p>\n

Driver plead guilty in April to two felony counts \u2013 wire fraud and making a false statement to SEC, which was investigating his fraudulent operation, according to authorities.<\/span><\/p>\n

In his plea agreement filed earlier this year, Driver admitted that he falsely told victims that he was producing profits of 1 percent to 5 percent a week through a commodity futures trading program involving E-mini S&P 500 futures contracts. <\/span><\/p>\n

Driver also told victims that he had never sustained a monthly net loss as a result of his trading, officials said.<\/span><\/p>\n

In reality, officials said Driver\u2019s trading activity over the course of his three-year scheme was overwhelmingly unprofitable, causing him to lose nearly almost all the money that he used to trade commodities.<\/span><\/p>\n

Investigators have calculated that Driver took in nearly $17.4 million from approximately 150 victims, including several in Ventura, Orange<\/strong> and Los Angeles<\/strong> counties. <\/span><\/p>\n

Prosecutors successfully argued in court today that 88 victims collectively lost nearly $10 million as a result of the scheme. Some of the investors were made whole or actually made \u201cprofits\u201d during the course of the Ponzi scheme when Driver used money from other investors \u2013 and not from profits \u2013 to pay off some people. <\/span><\/p>\n

For example, in court papers, prosecutors wrote that \u201cfor 8 solid months between June 2008 and mid-March 2009, Driver engaged in no futures trading whatsoever, yet took in $4.5 million over 55 separate deposits from his investors, and paid out $4.4 million in fictitious profits.”<\/span><\/p>\n

During the course of the scheme, Driver \u201cwas the largest \u2018winner\u2019 by far: he spent $2.1 million on himself and his family, including buying three brand new cars and taking out $471,000 in cash,\u201d according to a sentencing memo filed with the court.<\/span><\/p>\n

\u201cInvestment fraud schemes like this one rob individuals and families of their livelihood and their retirements, and the significant sentence imposed today accounts for the harm caused by the defendant\u2019s scheme,\u201d said U.S. Attorney Eileen M. Decker.<\/strong> \u201cThis case is a reminder that investors should be wary of lofty promises from investments.\u201d<\/span><\/p><\/blockquote>\n

Driver solicited investments through Nevada-based companies with names like Axcess Automation LLC, which was under investigation by the Securities and Exchange Commission in 2009 when Driver testified under oath. <\/span><\/p>\n

During this testimony, which was given under penalty of perjury, Driver said that he did not have a monthly negative return during the second half of 2007 \u2013 a statement which was false and which forms the basis of the second charge to which he pleaded guilty.<\/span><\/p>\n

In the sentencing memo, prosecutors called Driver \u201ca liar and a continuing economic danger to the community, who must be incarcerated for a lengthy period of time to keep him away from the investing public.\u201d<\/span><\/p>\n

Investigators said in court documents that Driver is currently \u201cdeceptively\u201d marketing a $25,000 commodities trading software package for E-mini S&P 500 futures contracts through a company called Avenge LLC that uses a website (www.avengesoftware.com), radio podcasts and social media. <\/span><\/p>\n

According to investigators, the website and other internet marketing materials for the current venture do not disclose that Driver runs the company.<\/span><\/p>\n

Furthermore, prosecutors said Driver failed to disclose to Avenge customers that he was facing a lengthy prison term and, by his own admission in court papers, that his \u201cbusiness will cease to exist if he is sentenced to a custodial sentence.\u201d<\/span><\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

LOS ANGELES A federal judge today sentenced the architect of a fraudulent investment scheme that caused scores of victims to suffer losses of nearly $10 million to 12 years and seven months…<\/p>\n","protected":false},"author":1,"featured_media":11461,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[1802,77,1480],"class_list":["post-16725","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized","tag-gordon-driver","tag-ponzi-scheme","tag-securities-and-exchange-commission"],"yoast_head":"\nMan Sentenced to More than 12 Years for Running Ponzi Schem<\/title>\n<meta name=\"description\" content=\"A federal judge today sentenced the architect of a fraudulent investment scheme that caused scores of victims to suffer losses of nearly $10 million to 12 years and seven months.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, 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