In the 2010 issue of Indiana Super Lawyers, we interviewed James Knauer of Kroger, Gardis & Regas about serving as the federal receiver in four Ponzi scheme cases. Here’s what Knauer had to say about the outrageous strategies that criminals will employ to ensnare victims.
In the first case I had, [the schemers’] pitch was that they had, through Goldman Sachs, an exclusive right to invest in hot IPOs–and this was in the Internet bubble days, where, when hot IPOs came out, the stock was so oversubscribed, you couldn’t get any of it. On its face, that doesn’t sound too unlikely, but when one of the larger investors questioned it, they hired an actor from California to fly to New York to meet with this investor, tell him he worked for Goldman Sachs, and that it was true. So I’ve seen some amazing things that they’ll do to convince people.
Read the full interview here.