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Fraudulent investment leads to civil litigation

| Jun 27, 2014 | Civil Litigation |

The Boy Scouts of America Trapper Trails Council has filed a lawsuit against a man that was allegedly involved in a Ponzi scheme that left the Boy Scout Troop without funds that it was entitled to receive. The council reportedly invested $200,000 in one of the defendant’s entities. The investment was made in 2008, but the defendant hasn’t had a license to sell investments since 1997. Oregon residents might like to learn about this interesting case.

The council says that it was defrauded out of $281,000 in total. They are seeking full repayment of that amount with the civil lawsuit they filed against the man. The civil litigation alleges embezzlement, actual fraud, larceny, fraud as fiduciary, false pretenses and false representation.

In the lawsuit, the council was entitled to receive 12 percent interest on a condominium complex investment. This was allegedly the security interest that would ensure repayment. The lawsuit goes on to say that the condominium building supposedly purchased wasn’t really ever purchased, despite the documentation that the defendant sent to the council.

The lawsuit filed against the defendant was ultimately dismissed by the council in June of 2012. The actual outcome of the case, such as whether it was settled out of court, isn’t known. In the latest turn of events in this case, the defendant is now facing criminal charges in relation to this investment fraud and others.

While the outcome of this case isn’t known, it serves as a reminder that anyone who is defrauded out of money has the right to do just as the council did. It might be possible for people who have been defrauded out of money to get some or all of their money back through civil litigation.

Source: InsuranceNewsNet.com, “Northern Utah Boy Scouts lost $281K in Ponzi scheme” Ben Lockhart, Jun. 20, 2014