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Recent Cases: Investor recovers $1.5 million invested in fraudulent real estate Ponzi scheme. |
Beginning in 2004, Alliance Resource Management, Inc. (“ARM”) solicited loans from investors which were purportedly to be used to purchase and rehab residential properties in and around Atlanta. The investors were given a 90-day Promissory Note with a high rate of interest and a Deed to Secure Debt on the rehab property as security for the loan. However, several years later, the investors learned that ARM had not been renovating and re-selling the properties, but in fact was running a Ponzi scheme -- obtaining multiple loans on each piece of property and using the later investors’ principal to pay the earlier investors’ interest payments. Through litigation in the United States Bankruptcy Court in Atlanta, Georgia, as well as separate title insurance claims, the Firm recovered substantially all of the investor’s invested funds. The case was handled by Ed Dovin and Allison Ficken. |
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