October 29, 2012

25 year old Boca Raton, Florida Resident Runs $10 Million Ponzi Scheme

Donald R. French Jr. Is being accused by federal authorities for allegedly perpetrating a four year long ponzi scheme in which he was able to collect over $10 million from around 20 clients. Authorities are calling this a classic ponzi scheme, due to the fact that it operated by promising investors impossible returns as a way of collecting capital. French has already been arrested and is facing wire fraud charges which carry a maximum prison sentence of 20 years. Earlier this year he pleaded guilty to passing bad checks to certain Las Vegas casinos, which led him to be sentenced to a maximum of 30 months in jail.

The scheme operated via D3 Capital Management LLC., a company which French set up in 2008 as the front for his operations. The company claimed to be "a premier provider of global investment management" and claimed to have offices and clients in Italy and Honk Kong. D3 would allegedly promise its clients up to a 50% return on their investments in emeralds and foreign currencies, but the reality was that French and his associates were allegedly pocketing the money and only investing a very small fraction. The money allowed French to allegedly travel to over 30 countries, drive exotic cars, and fuel his gambling. It also allowed French to move to Rome, where he resided for about five years and attained residency status.

French was arrested in South Africa and then deported to Las Vegas, Nevada to face charges for passing almost $1 million in phony checks to the casinos he frequented. He had accumulated large amounts of debt in these casinos once the money from the ponzi scheme was depleted. Upon his conviction for those charges, he was sent to Florida to face charges for the Ponzi Scheme, which he has already confessed to the FBI on carrying out.

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