New Jersey Regulators Say $40 Million Lost in Ponzi Scheme
According to New Jersey securities regulators, Carr Miller Capital is a Ponzi scheme in which investors were promised returns of 10 to 15 percent for nine months by investing in supposedly legitimate investments. Actually the returns paid to earlier investors were nothing more than funds received from later investors, leading regulators to believe that there may have been no actual investments. It is also felt that customers were referred to Carr Miller by other brokers and advisors.
As is usually the case, investor’s money was used to support a lavish lifestyle. Roughly $13 million was used to purchase cars, New Jersey Devil’s skyboxes, meals and vacations, among other things. Another $16 million was used to purchase film production companies and real estate ventures not authorized by investors.