Elliott Enterprises Ponzi Scheme - Notorious Frauds and Schemes

It Looked Good on Paper

Elliott Enterprises lost millions of dollars each year for seven years. Nevertheless, they retained their current investors and attracted new ones by making false claims regarding the safety and performance of their investments.

For example, they told everyone they had a good track record and were financially sound. They said they were a regulated bank and assured investors that particular investments were insured or secured when, in fact, the investments were often backed with insufficient, worthless or non-existent collateral.

They falsely told investors that income from their investments would be tax-free and that they had always received a clean bill of health by periodic audits by the Florida Department of Professional Regulation when, in fact, no such audits were ever performed.

They lulled their investors by sending regular, competitive interest payments at rates just above the market rate but were only able to maintain these payments, despite huge, mounting losses, by the use of a ponzi scheme.

The owners themselves profited enormously from this arrangement. Their extravagant lifestyle included multi-million dollar residences, resort homes, and luxury automobiles. Following the failure of the enterprise, investors and creditors have recovered from the receiver 10.5 cents on the dollar.