Ponzi Scheme Fraudulent Investments-Charlie Brown Preferred Trust Company

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You're a Bad Man Charlie Brown

Charles Thomas Brown, age 66, DBA Preferred Trust Company, was sentenced to 17 ½ years for operating a $23,000,000 ponzi scheme that involved over 300 victims. He pled guilty to one count of Fraudulent Schemes and Artifices and one count of Theft, both class two felonies.

He issued investors six month "promissory notes" that were to earn a return of between 8% and 18%. At the end of a six month term, he simply sent the investor a new promissory "note" that canceled the previous one which automatically "rolled over" for another six month term. Unless the investor contacted him and requested that the investment be paid back he had control of all deposits on which no interest was actually being generated.