Boston Accident and Injury Lawyer

October 23, 2009

Milton Retana of Best Diamond Funding Arrested for Allegedly Operating Investment Scam

by Boston Lawyer

October 23, 2009 – Milton Retana, 43 from Norwalk, California, was arrested in December 2008 for allegedly running a $62 million Ponzi scheme that involved over 2000 investors. Retana perpetrated the alleged scam through his company Best Diamond Funding, a real estate brokerage and mortgage lending firm.

According to the indictment, Retana was able to raise the money by telling potential customers that their money would be invested in real estate purchases and sales. Allegedly, Retana claimed that Best Diamond Funding successfully bought, renovated, and sold homes in the Los Angeles area and employed as many as 60 real estate agents and bought 50 to 60 properties at a time. Retana offered returns of up to 7% a month and guaranteed an 84% yearly return on investment.

Retana, who is of El Salvadoran descent, targeted the Latino community by advertising his company in Spanish-language magazines, internet ads, and held weekly investment seminars throughout Los Angeles. It is alleged that Retana suggested that potential investors use the equity in their homes to secure loans in order to
obtain capital to invest with Best Diamond Funding.

October 21, 2009

David Merrick ( TIRN ) Used mytirn.com for Fraudulent Scheme

by Boston Lawyer

October 23, 2009 – The SEC and CFTC have filed civil actions against David F. Merrick and his Trader’s International Return Network ( TIRN ), and Merrick’s other corporate shells, most of them registered in Florida. The government alleges that Merrick and TIRN operated a $22 million Ponzi scheme, raising money from thousands of unsuspecting investors.

It is alleged that Merrick, 61, organized a group of “finders” who earned commissions by soliciting potential new investors touting TIRN”s double-digit monthly returns on investment in foreign currencies, real estate and precious metals. It appears that little or no money was ever invested at all. Rather, Merrick diverted the money to his own use or to paying redemptions to other investors.

Merrick also conducted investment seminars seeking to lure new customers in the U.S. and elsewhere, including Panama, Antigua and Punta Cana (See Youtube video below). It has been reported that Anres representatives were present at some of these seminars. Merrick had plans to export his investment club to many foreign countries, and some Spanish and Portuguese language websites are still active.

One unique feature of this scam was Merrick’s use of debit cards as a vehicle for investors obtaining interest or principal from the investments. Merrick teamed up with a private Nevada corporation, Anres Technologies Corporation, base in Plano, Texas, to supply the debit cards. Investors used the Anres website to transfer funds to their cards, and were charged fees for the transactions, including link up charges for use of the site.

It is alleged that Merrick transferred at least $8.8 million to Anres in order to fund the cards, which appears to have been affiliated with the Palm Desert National Bank, a California bank with branches in Palm Desert and several other California locations. Although some investors successfully used the debit card to make withdrawals, it is unclear how much was distributed using the cards.

October 19, 2009

Medford, Massachusetts Accident Leaves One Dead

by Boston Lawyer

October 19, 2009 – Marianne Murphy, 47 from Medford, Massachusetts, was pronounced dead after suffering serious personal injuries during a car accident on Route 93. Murphy was riding in the front passenger seat. Gerald Murphy, 48 also from Medford, was driving a 2010 Toyota, in which Mrs. Murphy was riding in the front passenger seat. The accident occurred at around 1:02 a.m. Sunday morning on Route 93 in Medford near Roosevelt Circle.

Apparently Mr. Murphy lost control of the sedan, which hit the guardrail on the right side of the highway and then traveled across all four lanes of traffic and collided with a concrete barrier. The car went back across the highway and eventually stopped in the breakdown lane.

Mrs. Murphy was taken to Lawrence Memorial Hospital and then transferred to Massachusetts General Hospital, where she was pronounced dead. Mr. Murphy was taken to Massachusetts General Hospital and treated for serious injuries. Apparently neither was wearing a seatbelt. Two passengers that were riding in the backseats were wearing seatbelts and suffered only minor injuries.

The accident remains under investigation.

Source: WBZ

October 19, 2009

Bourne, Massachusetts Drunk Driving Accident Leaves Ends in Tragedy

by Boston Lawyer

October 19, 2009 – Robert Coffey, 46 years old from Attleboro, Massachusetts, died Sunday as a result of serious personal injuries sustained while he was a passenger in the car of a drunk driver who lost control of his Dodge Durango. Shawn Potrzuski, 32 also from Attleboro and Coffey’s step-son, was apparently driving under the influence of alcohol. Karen Coffey, 53 also from Attleboro and the mother of Potrzuski, was seriously injured during the crash.

Apparently, Potrzuski lost control of the Dodge while driving north on Route 28 at the Otis Rotary in Bourne early Sunday morning. The SUV then crossed over Connery Avenue and entered the woods eventually colliding with a tree. Mr. Coffey was sitting in the backseat and was not wearing a seatbelt. He was rushed to Falmouth Hospital, where he unfortunately passed away.

Mrs. Coffey, who was sitting in the front passenger seat and was wearing a seat belt, was also taken to Falmouth Hospital, where she was treated for serious injuries. Potrzuski was also wearing a seat belt and was treated at the scene for minor injuries.

According to the Massachusetts State Police, the three were returning home after attending a wedding. Potrzuski was arrested and charged with motor vehicle homicide, operating under the influence of alcohol and other violations.

The accident remains under investigation.

Source: The Sun Chronicle

October 15, 2009

Dartmouth, Massachusetts Collision Leaves One Dead, Two Injured

by Boston Lawyer

October 15, 2009 – Susan Lepage, 46 from New Bedford, Massachusetts, died Wednesday as a result of serious personal injuries sustained in a head-on collision on Route 195 in Dartmouth. Dakota Jones, 21 from Marston Mills, was driving a 1997 Mitsubishi Diamante that smashed into Lepage’s 2005 Ford Mustang. The accident occurred at around 4:45 p.m.

According to the Massachusetts State Police, Jones’ vehicle crossed the median from the westbound lane into the eastbound lane and struck Lepage’s Mustang head-on. The collision caused the Mustang to hit a 1997 Jeep Grand Cherokee, causing it to rollover. The Jeep, driven by Daniel Allende, 29 of Fairhaven, rolled into 2005 Toyota Prius driven by Amy Lopes, 20 from New Bedford. Lopes was able to pull her vehicle into the breakdown lane.

Sadly, Lepage was pronounced dead at the scene. Jones and Allende were transported via ambulance to St. Luke’s Hospital in New Bedford and treated for non-life threatening injuries. Jones was subsequently arrested and charged with vehicular homicide by negligent operation, marked lanes violation, and speeding.

The eastbound lanes of Route 195 were closed for approximately two hours. The accident remains under investigation by the State Police and the Bristol County District Attorney’s Office.

Sources: WPRI, ABC6

October 15, 2009

SEC Sues David F. Merrick and TIRN for Alleged Investment Scam

by Boston Lawyer

October 15, 2009 – The SEC has filed an emergency civil action against David F. Merrick, Traders International Return Network (TIRN), MS Inc., GTT Services, Inc., MDD Consulting, Inc., and Go ! Tourism, Inc alleging financial fraud. According to the complaint, Merrick and his business entities operated a $22 million Ponzi scheme since at least July 2008.

Using a website, www.mytirn.com, Merrick allegedly raised funds from at least 2500 investors by promising monthly dividends of
up to 22% stating that investor money would be used to buy foreign currency trading, international bonds, international stocks and other investments. Merrick and TIRN instructed customers to deposit funds into accounts in the name of MS and GTT, entities controlled by Merrick. Merrick then allegedly transferred money from those accounts into other accounts in the names of MS, GTT Services, MDD Consulting, and Go ! Tourism.

According to the SEC, Merrick and TIRN did not invest in any type of securities but instead used the money for Merrick’s personal use and to repay earlier investors. The SEC also claims that Merrick used at least $3.7 million to finance his lifestyle and to pay credit card bills from MS and GTT Services.

October 15, 2009

Cedars-Sinai Medical Center Admits Error Caused Radiation Overdoses

by Boston Lawyer

October 15, 2009 – Cedars-Sinai Medical Center in Los Angeles, California admitted Monday
that a mistake in default settings on a CT scanner used to perform brain scans on patients resulted in an increase in the amount of radiation emitted by the machine. The mistake occurred in February, 2008 when the hospital changed its protocol for scans used to diagnose strokes.

A specialized type of scan, called a CT brain perfusion scan, is used to diagnose strokes by detecting disruptions to the flow of
blood to the brain. Doctors apparently decided to override the default settings of the scanner in order to get better data. Changing the settings increased the amount of radiation used by the scanner.

However, as a result of the change, radiation levels were eight times higher than was believed. Although the machine was used for other types of scans, it apparently only affected potential stroke victims because the settings were only changed for the brain perfusion scan.

October 13, 2009

Fall River, Massachusetts Motorcyclist Involved in Fatal Crash

by Boston Lawyer

October 13, 2009 – Scott Coop, 27 years old from Fall River, Massachusetts, has died as a result of serious personal injuries sustained in a motorcycle crash on Sunday. The accident occurred on Route 79 south in Fall River just after 2:30 p.m.

According to police, Coop lost control of his motorcycle shortly after entering Route 79 from the Brightman Street on-ramp. After losing control, Coop traveled across all three lanes of traffic before colliding with the median. Coop was pronounced dead at the scene.

The Massachusetts State Police are investigating the crash but have indicated that speed may have played a factor.

Source: WPRI

October 9, 2009

Gregory Bell Pleads Guilty for his Involvement in Petters Company Inc. Scam

by Boston Lawyer

October 9, 2009 – Gregory Bell, a former Chicago hedge fund manager and owner of Lancelot Investment Management, LLC, pled guilty to one count of wire fraud yesterday in the United States District Court for the District of Minnesota. Wire fraud carries a maximum of 20 years imprisonment and a fine of $250,000. Bell’s sentencing will be decided at a later date.

Bell is just one of several defendants in a pending civil action filed by the SEC against Thomas J. Petters, a Minnesota businessman charged with operating a multi-billion dollar Ponzi scheme from 1995 to 2008. Bell started Lancelot in 2001 and from 2002 to 2008 raised over $2.62 billion from hundreds of investors, who sold security interests in hedge funds they managed to Lancelot. According to the SEC’s complaint, Bell exchanged almost all of the investor funds for notes from Petters Company Inc. and fraudulently assured that their investments were in safe hands.

October 9, 2009

Richard M. Harkless Sentenced to 100 Years for Operating MX Factors Ponzi Scheme

by Boston Lawyer

October 9, 2009 – Richard M. Harkless, 65 years old from Riverside, California, was sentenced to 100 years in federal prison on September 28, 2009. Harkless was convicted of three counts of mail fraud, three counts of wire fraud, and one count of money laundering. Apparently Harkless operated a multi-million dollar investment scam through his business entities Mx Factors LLC, BBH resources LLC and JTL Financial Group LLC. Harkless’ three sales agents, Daniel Berardi, Jr., Thomas Hawkesworth, and Randal W. Harding were all sentenced to 6 years in federal prison for their involvement.

In addition to jail time, Harkless was ordered to pay over $42 million in disgorgement, civil penalties, and prejudgment interest. The judgment ordered Berardi and Hawkesworth, managing members of BBH Resources, LLC, to pay over $11 million and Harding, managing member of JTL Financial Group, LLC, to pay over $17 million.

According to the SEC, between 2000 and 2003 Harkless and his sales agents induced approximately 600 investors from all over the country to invest over $60 million. Mx Factors offered potential investors 14% returns on short term 2 to 3 month investments. Most of Mx Factors’ clients were construction contractors, wholesalers, and manufacturers who sought accounts receivable financing.