Sarasota has been the location of several significant Ponzi schemes. Notorious cases have involved operators who defrauded investors out of millions of dollars by promising high returns and using new investor funds to pay existing ones.
Below is a list of some of the notable Ponzi schemes associated with the Sarasota area:
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- Michael J. DaCorta (Oasis International Group): DaCorta ran an $80 million Ponzi scheme from 2011 to 2019, convincing over 700 victims to invest in his foreign exchange (FOREX) trading company. He guaranteed annual returns of at least 12% while actually losing nearly all the funds traded and using investor money for a lavish lifestyle, including private jets, luxury cars, and million-dollar homes. He was found guilty and sentenced to 23 years in federal prison.
- Arthur Nadel: Nadel, a former hedge fund manager operating out of a storefront in downtown Sarasota, was involved in one of the largest local schemes, costing his clients more than $160 million. He was sentenced to 14 years in prison in 2010.
- Beau Diamond (Diamond Ventures LLC): Diamond operated a $37 million Ponzi scheme from 2006 to 2009, soliciting funds for purported FOREX trading and promising high monthly returns. He used investor proceeds to make Ponzi distributions and for personal benefits.
- John and Marian Morgan: This Sarasota husband-and-wife team ran Morgan European Holdings, scamming 87 investors out of $28 million. They spent $10 million on personal items, including waterfront homes, boats, and a Maserati. John was sentenced to 10 years, while Marian received 35 years in prison.
- Wayne Della Penna: Della Penna, a Sarasota-based private fund manager, defrauded investors, many of whom were acquaintances from his church, by promising 5% annual returns. He siphoned about $1.1 million for personal use, including mortgage payments on his 10,000-square-foot home.
- James Risher: Risher was involved in a scheme that defrauded investors of more than $21 million, using the funds for jewelry, art, travel, and real property.
- Woodbridge Group of Companies: While a national $1.2 billion scheme, several Sarasota residents were among the investors who claimed significant losses. The company’s CEO, Robert Shapiro, resigned amidst a lawsuit, and the company filed for bankruptcy.
These cases are a reminder that investors should be wary of investment programs that promise unusually high or guaranteed returns, as they often turn out to be fraudulent Ponzi schemes. For more information on common types of investment fraud and how to protect yourself, visit the SEC’s investor protection page.
Source: Google
Source: Google
