CyberNET a circle of fraud, FBI affidavit says

[seemslikeadream]

Thursday, December 02, 2004
By Ed White
The Grand Rapids Press
GRAND RAPIDS -- Federal agents are building a case of fraud, money laundering and tax evasion against executives at the CyberNET Group, according to a 54-page document that describes an elaborate scheme to reap millions of dollars from lenders who believed they were financing high-tech equipment and services.

Instead, a big chunk paid for the high life of Barton and Krista Watson: a condominium off Chicago's Michigan Avenue, a $350,000 Rolls Royce, wine worth $20,000, a Cessna airplane and more than $1 million in credit-card purchases, the FBI said.

They created phony companies and rented mailboxes across the country to fool lenders into keeping the cash flowing, agent Roberta Gilligan said.

She described it as a "Ponzi" scheme, named for an old Boston swindler, as the Watsons and President James Horton repeatedly sought new sources of money to maintain their lifestyle and keep up with debt payments.
more
http://www.mlive.com/news/grpress/index.ssf?/base/news-18/1102004126205710.xml

[Carolab]

1. OMG, yes!

A Ponzi scheme. Don't you see? That is JUST what Amway/Quixtar is and also the money-raising scheme that is used for Bush/Republican campaign money. That's what the "Rangers" and "Pioneers" etc. are all about. They borrowed the same pyramid scheme approach. I read about it in something I found on the net the other day. This is obviously a PERVASIVE technique used by these people to run money through. I'd send this to Madsen.

Did you read farther in the article to the mention of Hong Kong? Chinavest?

[bobthedrummer]

2. Timely kick.

:dem::kick:

[nashville_brook]

3. it's all so simple -- greed n/t