Pinnacle Development Partners Charged With Running a Ponzi Scheme
Pinnacle Development Partners LLC has been charged with running a Ponzi scheme that took $69 million from over 2,000 investors. The top man, Gene O’Neal was charged with 19 counts of federal mail and wire fraud.
In 2006, Pinnacle advertised 25% returns in 60 days (which equals a 280% annual return). The company claimed it earned such high returns by purchasing distressed real estate and quickly selling it at a profit.
While the company claimed to have sold over 100 such properties, a federal receiver says that Pinnacle really only acquired 21 properties, and never sold them outside Pinnacle’s various partnerships. The federal indictment says that investment “returns” were paid from new investor funds, and this type of scam is generally referred to as a Ponzi scheme.
Barry Minkow, fraud investigator (and ex-con of ZZZZ Best fame) helped expose the company and its scam.
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Comments (3)
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IT IS A DAMN SHAME THAT HE REPRESENTS THE BLACK COMMUNITY IN SUCH A NEGATIVE LIGHT. THIS MAN HAS STOLEN HARD-WORKING AND HONEST PERSONS MONEY THAT BELIEVED IN HIS GUARANTEE. HE HAS DESTROYED PEOPLE’S DREAM AND MADE IT DIFFICULT FOR PEOPLE TO REINVEST THEIR MONIES AND MAKE A LIVING THE EARNEST WAY BECAUSE NOW A LOT OF US HAVE NOT RECEIVED OUR INITIAL INVESTMENTS AND MAY ONLY RECEIVE A PORTION. I ASK THAT THE JUDGE GIVE MR. GENE THE MAXIMUM TERM ALLOWABLE UNDER GA FOR HIS DECEITFUL, DISHONEST AND MALICIOUS INTENT IN HARMING OTHERS FOR HIS OWN GREED. i ALSO WANT HIS ASSOCIATES AND PARTNERS IN CRIME ALSO BROUGHT UP ON CRIMINAL CHARGES…(EX. PAMELA WLAKER) BECAUSE THEY KNEW WHAT WAS UP AND HELPED GENE TO PERSONALIZE HIS THIEVERY AND SWINDLE PEOPLE OUT OF THEIR MONIES MORE EASILY.
I agree with the previous poster, all the associates working for Mr. O’neil should also be beld liable and charged as accomplices to his crimes. I spoke to Richard Morales, and I stressed to him my fear for investing into a scam that truly sounded too good to be true. He lied to me, my mom and my whole family. He lied us out of a lot of money. They all deserve to go down for what they did to all the investors.