Investors have sued a lawyer who allegedly was involved in a gunfight with FBI officers earlier this month, accusing him of managing a $300 million Ponzi scheme selling investments in personal injury settlements.
According to Wall Street Journal reporting, lawyer Michael Beasley acknowledged the Ponzi scheme revealed in a class action complaint after a gunfight with FBI officials at his Las Vegas residence. Three federal investigators knocked on Beasley's door on March 3, and he opened it with a pistol to his head, subsequently turning the gun on the agents, according to a prosecutor during a court hearing later that month.
The agents fired at him twice, and as he was hemorrhaging from his chest and shoulder, Beasley revealed that the investments he sold and channeled through his Wells Fargo trust account were, in fact, a Ponzi scheme, according to the Wall Street Journal article.
Beasley was accused of assaulting a federal officer, but neither he nor his accused accomplice, Jeffery Judd, have been charged with any financial offenses as of yet. However, Beasley, his business, and Wells Fargo Bank will have to deal with enraged investors seeking damages.
Beasley Conspired With Jeffrey Judd To Aquire $300 Million From Investors
Beasley was accused of collaborating with Judd, the creator of J&J Consulting, to sell and market investments in personal injury settlements that "appear to have been wholly contrived," squandering up to $300 million from investors in "a classic Ponzi-like approach," according to the organization. While the investors did not identify Judd as a defendant in the class-action lawsuit, Judd and Beasley were named as defendants in a separate lawsuit...
According to the investors, Wells Fargo is equally responsible for the fraud, since Beasley diverted funds from his trust account into his coffers and the hands of others implicated in the plan.
"Wells Fargo undeniably noticed and blacklisted the tens or hundreds of millions of dollars in arriving investments and then the redistribution of those finances into the accounts of accomplices, brokers, and investors — the vast majority of whom had Wells Fargo accounts for this singular purpose," according to the complaint. "Despite this information, Wells Fargo did nothing but keep supporting circular transfers and fund diversion."
Judd and Beasley Would Utilize Trust Account Funds For Investor Payouts
According to the investors, Judd and Beasley would tap into the trust account to give investors the promised 90-day returns, but even those payouts ceased after Beasley's arrest on March 3. Judd informed investors that he would be unable to make the payments without Beasley and that the principle would not be repaid to the investors.
Judd's attorneys have claimed that J&J Consulting was a victim of Beasley's scheme and that the business will investigate what transpired to expose the wrongdoers.
Think You Have a Case? Speak with a Ponzi Scheme Lawyer
Were you a victim of a Ponzi scheme? If you or someone you know has lost money as a result of a scheme, speak to an experienced investment fraud attorney today. Dimond Kaplan & Rothstein, P.A. has vast experience with cases related to Ponzi schemes. The firm has recovered millions of dollars for victims and we will aggressively pursue claims to recover your losses.
Contact a Dimond Kaplan & Rothstein Attorney Today
To schedule an appointment for a FREE case evaluation, contact a Ponzi Scheme attorney at Dimond Kaplan & Rothstein, P.A. today.
Contact an investment fraud attorney at Dimond Kaplan & Rothstein, P.A. to schedule a FREE case evaluation. Our offices are located in Miami, Los Angeles, West Palm Beach, New York, and Naples and we represent clients nationwide. Translation services are available.