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learnedly read, too; in part, of intellectual rigor
Posted Wednesday, December 31, 2008
A Haitian Bernard L. Madoff Is Accused of Orchestrating a
Ponzi Scheme That Lost Fellow Compatriots Millions
By The Baltimre Business Journal
The Securities and Exchange Commission said Tuesday it has filed an emergency
action to halt an alleged Ponzi scheme conducted by Creative Capital Consortium,
LLC and A Creative Capital Concept$, LLC in Lake Worth, Fla., both led by George
According to the commission's complaint, the defendants raised at least $23.4
million from thousands of investors in the Haitian-American community nationwide
through a network of investment clubs Theodule directed investors to form.
On Monday, Miami federal court Judge Donald M. Middlebrooks issued an order
placing Creative Capital under the control of a receiver to safeguard assets and
froze Theodule's assets.
"This alleged Ponzi scheme preyed upon unsuspecting members of a close-knit
community, attempting to take advantage of the trust they had in each other,"
Linda Chatman Thomsen, director of the SEC's Division of Enforcement, said in a
David Nelson, director of the SEC's Miami Regional Office, added, "This case
demonstrates that individuals will often rely on a shared affinity to gain
investors' trust. In this case,
Theodule allegedly abused that trust to con thousands of investors in the
Haitian-American community." Theodule allegedly solicited investors by
guaranteeing a 100 percent return on their investment within 90 days based on
his claimed successful trading of stocks and options.
The defendants also solicited investors by claiming that Creative Capital's
trading profits were used to fund new business ventures, some of which benefited
the Haitian community in South Florida and Haiti. In reality, Theodule lost at
least $18 million trading stocks and options in the last year alone, according
to the SEC.
In typical Ponzi scheme fashion, Creative Capital merely repaid earlier
investors with monies collected from new investors, the press release noted.
Finally, the complaint alleges, Theodule has commingled investor funds with his
personal funds and misappropriated at least $3.8 million for himself and his
Calls to Theodule’s attorney were not immediately returned. Print Email Yahoo!
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© 2008 American City Business Journals, Inc. and its licensors. Reprinted from
The Baltimore Business Journal of Tuesday, December 30, 2008.
SEC halts $23 million Ponzi scheme and affinity targeting Haitian-American
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