Ponzi Scheme Talk of Bankruptcy Hearing First Americans Insurance Services
Ponzi Scheme Talk of Bankruptcy Hearing
Posted: Feb 20, 2009 07:11 PM EST
Lincoln, NE.- Over 150 people jammed into a downtown courtroom today, and heard what they didn't want to hear; some of their life savings might be gone for good.
It's the latest legal chapter in the case of First of Grand Island. State officials claim the people who ran First Americans were behind a Ponzi scheme that may have bilked investors out of anywhere from $100 to $500 million.
First Americans has filed for Chapter 7 bankruptcy. After a three and a half hour meeting in Federal Bankruptcy Court some investors walked out wiping tears from their faces.
The company's lawyer said today that unless First Americans survives, investors are unlikely to get any of their money back.
First Americans top officials Stella Levea, James Masat, and Kenneth Mottin did not attend the hearing, apparently on the advise of their attorney.
During testimony today it was revealed that the State Patrol and FBI are investigating First Americans for possible criminal charges.
Reported by Joe Jordan, joe@action3news.com
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