Convicted Ponzi Fraudster Nevin Shapiro provides a Tsunami of Evidence against the University of Miami Football program…

August 17, 2011

Talking about going from “FAN” to folly…Nevin Shapiro is squealing like a stuck pig in his allegations regarding his actions and wrong doing in the University of Miami football program.

Feeling abandoned by the U of M program in his conviction for his massive Ponzi Scheme…Shapiro is now speaking out loudly from his Atlanta prison cell suggesting the U of M program might face the “death penalty” as his hand.  The question is – is any of this real?

In an interview:

Shapiro said for the first time that not only was it players who sought favor with him, but also Hurricanes football staff was involved. According to Shapiro’s attorney, Maria Elena Perez, the information first came out under questioning by federal officials and bankruptcy trustee attorneys.

Shapiro is at the heart of an NCAA investigation and his involvement with the school dates back to 2001-2002. Shapiro’s attorney has claimed that he provided UM players with the use of a yacht and various other favors.

Shapiro said he gave money, cars, yacht trips, jewelry, televisions and other gifts to a list of players including Vince Wilfork, Jon Beason, Antrel Rolle, Devin Hester, Willis McGahee and the late Sean Taylor of the Washington Redskins.

Shapiro also claimed he paid for nightclub outings, sex parties, restaurant meals and in one case, an abortion for a woman impregnated by a player. One former Miami player, running back Tyrone Moss, told Yahoo! Sports he accepted $1,000 from Shapiro at about the time he was entering college.

QUESTION:  What do you think about Nevin’s allegations?  Is he trying to gain favor by cooperating in a federal investigation (and thereby reduce his sentence)?  Do you think there is validity to his allegations?

COMMENT: One interesting aspect to Shapiro’s claims is that they would be consistent with the behavior of a Ponzi fraudster.  Most fraudsters tend to flaunt their ill gotten wealth as the reality is what they have is valueless to them since it cost nothing to begin with.  Most importantly, the fraudster is flaunting money in order to meet a need or feed ego.  So…not having the facts (which will come out) I have a sense that Shapiro’s claims may, at least in part, be true.

Interesting links:

https://chuckgallagher.wordpress.com/2010/05/11/another-ponzi-scheme-nevin-shapiro-from-the-fbi-website-no-less/

http://content.usatoday.com/communities/campusrivalry/post/2011/08/miami-athletes-cash-gifts-ponzi-scheme/1

http://galvestondailynews.com/ap/ee9797/

http://www.miamiherald.com/2011/08/17/2362972/accused-ponzi-swindler-nevin-shapiro.html

http://www.miamiherald.com/2011/08/17/2364074/questions-arise-as-um-reels-from.html

YOUR COMMENTS ARE WELCOME!


Another Ponzi Scheme – Nevin Shapiro – from the FBI website no less!

May 11, 2010

To make the FBI’s web site takes a lot.  But what is listed below in BLUE is directly from their site.  Once you finish reading…check out the comments.  It’s amazing how simple the fraud takes place and how easy it is for folks to get sucked into the PIT.

He was living the high life—taking up residence in a Miami Beach mansion worth more than $5 million, cruising around in a million-dollar yacht and his leased Mercedes-Benz, shelling out more than $400,000 for floor seats at Miami Heat basketball games, and donating thousands of dollars to the athletic program of a local university (the school was so appreciative it named a student athlete lounge after him).

But it all came crashing down on Florida businessman Nevin Shapiro last month, when he was charged with orchestrating a multi-million-dollar Ponzi scheme involving about 60 victims throughout the United States.


From January 2005 through November 2009, according to the criminal complaint filed in federal court in New Jersey (where one of his victims resides), Shapiro raised more than $880 million from his investors. These individuals thought they were investing in his wholesale grocery distribution business—Capitol Investments, a Florida corporation with offices in Miami Beach that Shapiro owned and ran as CEO.

In reality, there was no grocery distribution business. Shapiro allegedly used new investor money to fund principal and interest payments to existing investors—a textbook Ponzi scheme—while at the same time, taking tens of millions of dollars for his own use.

How did Shapiro convince his investors to give him their hard-earned money? According to the charges, he and others working for him showed potential investors fake documents that touted the profitability of his business, including:

  • Financial statements claiming that the business generated millions of dollars in annual sales;
  • Shapiro’s personal and business tax returns (also fraudulent);
  • Phony invoices revealing transactions that Shapiro’s business had supposedly entered into with other businesses; and
  • Promissory notes reflecting the amount of the victims’ investment, along with a schedule for a payment of interest (at anywhere from 10 to 26 percent on an annual basis) and the return of their principal.

The scheme eventually went the way of most Ponzi schemes—collapsing in on itself when it got too big to maintain financially. The criminal complaint alleges that Shapiro defrauded investors out of at least $80 million.

This particular case was brought in connection with the recently-established Financial Fraud Task Force, led by the Department of Justice, which investigates and prosecutes major financial crimes. And the case was definitely a multi-agency effort—in addition to the FBI, it was worked by the IRS Criminal Investigative Division and the Securities and Exchange Commission.

So how can you avoid being victimized by a Ponzi scheme? A few tips:

  • Be careful of any investment opportunity that makes exaggerated earnings claims.
  • Exercise due diligence in selecting investments and the people with whom you invest—in other words, do your homework!
  • Consult an unbiased third party, like an unconnected broker or licensed financial advisor, before investing.

If you think you have already been conned in a Ponzi scheme—or are suspicious about a pending investment—contact your local FBI field office or local authorities.

COMMENTS:

There are three components of most frauds from the perspective of the VICTIMS:  (1) Promise; (2) Illusion and (3) Trust.

Let’s look at what the FBI reported and see if we can find those components.  ILLUSION – according to the FBI, Shapiro created fake financial statements, fake personal and business tax returns and phony invoices.  He went to a lot of trouble to solidify the illusion that what he represented was real.  Some might question what might have happened if he had invested half that much time and effort into a real business instead of his phony scam?

Ah, but the hook that gets VICTIMS in – in the first place – is the PROMISE.  Here the promise was a return (plus principle) of anywhere between 10 to 26 percent.  I can’t speak to why…but in every case it seems clear that “investors” seem to gravitate to something that “others can’t have” – some call it greed.  I think, rather than greed, we have a psychological desire to be above average and if someone offers something that seems real that is “off limits” to the average guy…then we are more apt to bite.  Guess it’s DNA to want what we can’t or shouldn’t have…just think of the apple.  (Some readers will get that!)

Now, let’s be honest.  A PROMISE of a 26% return is not reasonable and ANY PROMISE of a guaranteed return should give us a moment to pause and investigate further!

The funny part about a Ponzi Scheme is that the ILLUSION that supports the PROMISE actually creates the TRUST needed to perpetuate the scheme.  More times than not, the “investors” VICTIMS actually are the ones that turn others on to the “scam” without having any knowledge that they are luring others into the trap!

The Ponzi scheme only collapses when the source of funding dries up.  Most of the time, the scheme gets so large and top heavy (the need for additional funding becomes so great) that it collapses on itself.

So…the FBI suggests the following which is worth repeating:

So how can you avoid being victimized by a Ponzi scheme? A few tips:

  • Be careful of any investment opportunity that makes exaggerated earnings claims.
  • Exercise due diligence in selecting investments and the people with whom you invest—in other words, do your homework!
  • Consult an unbiased third party, like an unconnected broker or licensed financial advisor, before investing.

BREAKING NEWS FOR NEVIN SHAPIROhttps://chuckgallagher.wordpress.com/2011/08/17/convicted-ponzi-fraudster-nevin-shapiro-provides-a-tsunami-of-evidence-against-the-university-of-miami-football-program/

YOUR COMMENTS ARE WELCOME!