Scott Ross Life Settlement Scam
Scott Ross of Woodstock, Ill. was charged with three counts of mail fraud for swindling people who invested in funds he claimed to operate, according to the U.S. Attorney for the Northern District of Illinois and the FBI.
He raised about $1.9 million from about 25 investors for the Elucido Fund, which claimed to invest in life settlements, and another $3 million from about 134 investors in the Moondoggie Fund, which purported to invest in the company’s stock and its reported development of a dual-sided computer monitor.
According to the criminal information: “(T)he defendant misappropriated all of the funds invested in the Elucido Fund to, among other things, pay expenses of the Maize Fund, make Ponzi-type payments to repay investors in the Moondoggie Fund and benefit himself, including the purchase of a $75,000-per-year sky box at the football stadium of the Indianapolis Colts and the payment of a $319,000 salary to himself.”
He told investors in the Elucido Fund they could expect returns as high as 34% from investments in life settlements and viaticals, although he never purchased such contracts, the FBI said.A 42-year-old Illinois man was charged Tuesday with allegedly defrauding more than $5 million from about 150 people, including raising $1.9 million from 25 investors in a life settlement scheme, according to the FBI in Chicago.
If convicted, Ross faces up to 20 years in prison and a $250,000 fine for each count.
Source: Press
* Remember, this is on again a scam/fraud related to investment side of Life Settlements, not the side of selling your policy. Just wanted to make that clear.
