Miscellaneous
Ponzi Schemes work because they often seem believable, but once they’re discovered and come crashing down, how do you get your money back? That is where a court appointed receiver comes in. Today’s guest is Melanie Damian. Melanie is the owner of Damian & Valori LLP and regularly serves as a court appointed receiver and distribution agent in both state and federal court. She is a past chair of the business law section of the Florida Bar, president of the International Women’s Forum Florida Chapter, and served as co-chair of the IWF 2018 World Leadership Conference. She is active in child advocacy and is the founder of the non-profit Educate Tomorrow and currently serves as the chair of the board of the SEED School of Miami, a public urban boarding school for underserved youth. Show Notes: [1:09] - Melanie describes her background, what she currently does, and her law firm Damian & Valori. [2:27] - If the business itself is fraud or the person running it is committing fraud, courts will decide many issues and may eventually lead to an appointed receiver. [4:15] - Once assets of a Ponzi Scheme are liquidated, the money that is found is given back to investors when possible. [5:20] - Melanie explains what happened with Income Store. [6:54] - Melanie was appointed as receiver in the case with Income Store and explains how digital assets have value. [8:18] - Employees are often the source of “whistleblower” claims. [9:55] - In some cases, these businesses are not registered. As a potential investor, always check to see. [11:14] - Melanie also suggests checking for current financial information. [12:37] - When Ponzi Schemes are unraveling, there’s this urgency to make excuses. [14:26] - Melanie describes the way scammers want to keep up the appearance of affluence when in reality they are spending more than they have. [15:38] - Many times, there are frauds that start out as real ideas that turn into a fraud. [16:03] - Melanie tells the story of a former minister turned fraudster. [17:55] - As her own receiver, Melanie gives examples of some of the larger scams she has worked on. She also worked on many under a different company. [20:05] - When explaining to investors that their investment was actually nothing of value, victims sometimes have a hard time believing it. [21:27] - The cases that Melanie is able to make more money back are when they buy things that can be liquidated rather than invest in gambling, stocks, and business. [22:58] - Houses, cars, and jewelry are the more common items that are liquidated to get money back. [24:02] - In one case Melanie worked on, the fraudster faked his own death. [24:52] - The hardest thing for Melanie to liquidate was a farm in Venezuela. [25:50] - Melanie had to go to Venezuela to see this property but Americans were not allowed there so she had to go undercover as a missionary. [27:18] - Melanie has been working on a business since 2019 and explains why it is taking a long time. [29:14] - In a donation scam, Melanie explains that because donors had the tax credit, the fraud business was kept going until they can liquidate without donors being taxed. [31:07] - It is a very complicated process and victims are usually very angry, but Melanie finds her job very interesting. [32:39] - It is rare to get 100% back for investors, but it is possible in certain situations. [35:45] - Suddenly not being able to reach your contacts and returns going up are reasons to be suspicious. [37:15] - Sometimes the physical location of the business can give red flags as well. [38:07] - If you try to get out and they say they need 30 days, it is likely a fraud. [40:03] - Overbuilt and underbuilt are indicative of fraud. [41:17] - If you are curious about a business that is asking for you to invest, you can easily search their address online to verify their physical location. [42:10] - Each receivership case has their own website. It is all public information and if you feel that you’ve been involved in a scam, you can fill out a form online. [43:03] - Melanie describes a couple of recent frauds that she is currently working on. [45:50] - Real help from receivers will not cost you any money. There are common scams where people come in and charge you money to retrieve money lost. [47:40] - Investors are profiled and preyed on again by scammers. [48:59] - If you are a victim of fraud in a case that has been assigned a receiver, you can reach out to the receiver through the website and hotline. They will not charge you for information and are ready to answer questions. Thanks for joining us on Easy Prey. Be sure to subscribe to our podcast on iTunes and leave a nice review. Links and Resources: Podcast Web Page Facebook Page whatismyipaddress.com Easy Prey on Instagram Easy Prey on Twitter Easy Prey on LinkedIn Easy Prey on YouTube Easy Prey on Pinterest Damian & Valori LLP Home Page Melanie Damian on LinkedIn