California Police Make Arrests In Alleged Ponzi Scheme

May 17, 2006

Ponzi Schemes • Ponzi Scheme Targeted African-American Churches • California Sues Bernie Madoff Associate • Feds Charge Two In ATM Ponzi Scheme • New Jersey Firm Pays $7.2 Million In Ponzi Scheme • Illinois Broker Accused Of Running $10 Million Ponzi Scheme • California Files 79 Criminal Charges in $200 Million Ponzi Scheme • New Jersey Broker Charged In $10 Million Ponzi Scheme • Bank Of America Sued In Internet Ponzi Scheme • New Jersey Man Arrested in Ponzi Scheme • States on High Alert for Investment Fraud • $7 Million Ponzi Scheme Nets Prison Term in California • Feds Charge Atlanta Investment Firm With Fraud • SEC Charges Mortgage Executive Ran $30 Million Ponzi Scheme • California Police Make Arrests In Alleged Ponzi Scheme • Ponzi Artist Blamed for $150 Million in Losses • Autosurf Sites the Latest Scam Sensation --- • Scam Alerts

Police in southern California have arrested two men, charging them with running a phony investment scheme that raked in over $68 million.

Calling it a classic "Ponzi Scheme," authorities say the pair duped investors into believing they were putting money in pools of life insurance policies.

In fact, say police, Robert Alvin Coberly Jr. and Curtis Devin Somoza put most of the money into their own pockets. They allegedly lived well on the enterprise, buying houses, a $400,000 wristwatch and a $300,000 boat.

In that alleged scam, the pair reportedly sold about $6.7 million worth of "prime bank" note investments to about 50 investors all over the country.

They allegedly used $3.1 million of that to pay returns to existing investors, helping to perpetuate the scheme.

Investors caught up in the scheme said they believed their money was going into insurance pools that would yield a five to one return with no risk. Police say there is really no such thing.

Report Your Experience
If you've had a bad experience -- or a good one -- with a consumer product or service, we'd like to hear about it. All complaints are reviewed by class action attorneys and are considered for publication on our site. Knowledge is power! Help spread the word. File your consumer report now.

Share		Follow us on Twitter.

Back to the top |