NEWARK, N.J. (Legal Newsline) - New Jersey Acting Attorney General John Hoffman announced a $36.4 million Superior Court judgment on Wednesday against the alleged operators of a Ponzi scheme for allegedly defrauding investors.
Judge David Katz rendered a decision in favor of the New Jersey Bureau of Securities against Carr Miller Capital LLC, Everett Miller, the company's president, John Fish, a former vice president of the company, and Ryan Carr, another former vice president of the company. Hoffman's office filed a lawsuit and obtained a court order in December 2010 to freeze Miller's assets and place a receiver in charge of any related companies.
Carr Miller Capital allegedly offered unregistered nine month notes that purportedly provided annual return rates of up to 20 percent. Funds sent to investors investors as interest payments were allegedly capital from new investors being used to keep the Ponzi scheme afloat. The defendants also allegedly used investor capital to pay for personal expenses.
"Ponzi schemes continue to be perpetrated against investors and this case should be taken as a cautionary tale by consumers and also would-be fraudsters," Hoffman said. "Those who think they can defraud investors and enrich themselves will find out how wrong they are, as these three did."
Under the terms of the judgment, the defendants must pay $29.8 million to defrauded investors and an added $6.5 million in civil penalties to the Bureau of Securities.