Jehovah's Witnesses Financial HONESTY - DISHONESTY Court Cases

JEHOVAH'S WITNESSES -- WATCHTOWER SOCIETY

FINANCIAL HONESTY & INTEGRITY

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STOCKS & COMMODITIES INVESTMENT CASES

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VINCENT JULIUS DORTCH MASS MURDERS-SUICIDE. On the same day that his elderly Jehovah's Witness Father died, active Jehovah's Witness Minister Vincent Dortch purchased the two handguns that he used three weeks later to murder three business associates, wound a fourth associate, and commit suicide as police moved in.

Vincent Dortch was a member of a large, extended multi-generation African-American Jehovah's Witness Family living along the Atlantic coast from Brooklyn to Lynchburg, Virginia. Vincent Dortch grew up in Brooklyn. As an adult, Dortch lived beyond his means, was constantly in debt that he could not repay, and filed bankruptcy multiple times.

On a Monday evening in February 2007, Vincent Dortch, age 44, lured six other investors in Watson International Inc. to a Philadelphia office building with a promise of an additional investor with additional money to invest in the company's ongoing, but faltering, Union, NY, commercial real estate development. Dortch is believed to have talked his third Jehovah's Witness Wife into allowing him to invest $200,000.00 or more from the recent sale of her home and money withdrawn from her 401k. Because the Dortch Couple were not wealthy, and for several reasons to follow, there is a good chance that at least some of the other investors were fellow Jehovah's Witnesses.

Shortly after the meeting commenced, Dortch pulled one of his two handguns, ripped out the telephone plugin, and began to accuse the three D/Os (two African-Americans and one caucasian) of stealing money from the corporation. Dorch then ordered a fourth attendee to bind the three D/Os with duct tape. Dortch then told the three D/Os that they had a minute or two to pray. Dortch then shot the three D/Os, but also accidentally wounded another man. Dortch ordered the fourth attendee to bind with duct tape the man whom he had accidentally shot. Then, Dortch again shot the three D/Os in their heads for good measure.

Vincent Dortch then kidnapped the two other attendees whom he promised that he would not harm. Dortch wanted them to accompany him to New York, where was another investor whom he wanted to kill, but who had not attended the meeting. Outside the building, the two unharmed attendees managed to talk Dortch out of going after the man in NY. Dortch took them back inside and bound them with duct tape.

In the meantime, the wounded man had managed to get out of his bindings, repair the telephone line, and call 911. Responding police encountered Dortch in the offices. Dortch fired one shot at them before retreating and quickly shooting himself in his head. Names of the two unharmed attendees were not released.

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It really is a small JW world. Recently, this Editor discovered that a JW "Special Pioneer" who had done this editor multiple personal injustices many decades ago, turns out to be a very close California relative of WEP, thus likely involved in one or more of the WEP businesses mentioned on this and following pages. JW Special Pioneer also acted as a "spy" for two other JW Hypocrites mentioned on this very webpage -- when it was JW SP who in fact was the primary perpetrator of the various events. JWs who never get to see the inside of WatchTower World have no clue that it is a SEWER, where only younger RATS are promoted to work for the OLD RATS.

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WILLIAM E. PARODI SR.

FORMER BETHELITE??? In the mid 1960s, William E. Parodi purportedly left university shortly prior to graduating. According to a 1980s marketing brochure, Bill Parodi thereafter took an "entry-level position" with a "large printing firm". Hmmmm!!!

William E. Parodi served on the Orange County, California HOSPITAL LIAISON COMMITTEE for nearly 13 years from 1992 until 2005.

In 2019, William E. Parodi appeared at the June meeting of the Jackson Hole, Wyoming AIRPORT BOARD on behalf of the Jackson Hole Congregation of Jehovah's Witnesses seeking the Board's permission to do "cart witnessing" at the Jackson Hole Airport. Bill and "Dee" Parodi have a summer home in Jackson Hole, as reportedly do other wealthy JWs.

We believe that Bill Parodi and his multi-decades computer programmer partner, their multiple computer-related businesses, and their myriad of JW Elder, MS, etc. computer-expert employees are the people actually responsible for many of the much-heralded computer innovations at the various WatchTower Society facilities.

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SECURITIES AND EXCHANGE COMMISSION v. WILLIAM E. PARODI, SR. was a 1988-89 federal administrative action in which William E. Parodi, aka William Parodi, aka Bill Parodi, then age 47, of Woodland Hills, California, consented to be PERMANENTLY BARRED from association with any broker, dealer, investment company, investment advisor, or municipal securities dealer.

Bill Parodi's brother, Frederick W. Parodi, then age 35, of Canoga Park, California, also consented to be PERMANENTLY BARRED from the securities industry by the S.E.C. This action resulted from the S.E.C.'s finding that both brothers, while employed as registered representatives at two California brokerage firms, had engaged in excessive and unsuitable trading (churning) of their multiple California Municipality customers' accounts, and had misrepresented and omitted material facts to their multiple California Municipality customers. The Parodi Brothers worked as brokers for First Investment Securities, of Little Rock, Arkansas in 1987, and for E.F. Hutton in 1986. Allegedly, the illegal account "churning" had generated at least $1,750,000.00 in commissions.

More specifically, the S.E.C. alleged that the Parodi Brothers had invested the money of seven California Municipalities, plus three local government agencies, into high-risk bonds, and then "churned" the accounts so as to yield excessive commissions for both the Parodis and the two brokerage firms. Additionally, the customers of the Parodi Brothers alleged that they lost a total of $8,279,000.00 while doing business with them. As examples, the City of Imperial Beach, California invested amounts averaging $195,000.00 over a recent four-month period. However, that account was turned over 20 times through various investments, costing the city $104,000.00 in commissions. The city lost its initial investment, plus $10,120.00. Rancho Palos Verdes invested amounts averaging $1,120,000.00 between May 1986 and March 1987. Allegedly, Bill Parodi, generated $190,000.00 in commissions from the account, which turned over 46 times. The city lost $68,140.00.

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THREE VALLEYS MUNICIPAL WATER DISTRICT ET AL v. WILLIAM E. PARODI, SR. ET AL was a 1988-97 California federal civil court case, in which the aforementioned California Municipalities and governmental entities attempted to recover some of the $8,279,000.00 which they allegedly lost while doing business with the Parodi Brothers and their employers. The lawsuit also requested $16 million in punitive damages. Some entities managed to settle their cases. Other plaintiffs litigated their claims only to have the federal courts send their claims to arbitration -- the awards which some plaintiffs believed to be too small.

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According to a May 15, 1984 NEW YORK TIMES article, the above scenario was NOT the first time that William E. Parodi had been investigated by the S.E.C. In December 1981, Bill Parodi was co-founder of an Irvine, California brokerage firm called National Money Market Services, Inc. By only early 1984, the New York State Attorney General, Robert Abrams, began investigating National Money Market Services after nearly 40 New York school districts and counties were persuaded by NMMS to invest $20 million with a small government securities dealer recommended by NMMS that filed for bankruptcy in April 1984.

The NYTIMES alleged that Bill Parodi and his partner, Philip L. Kratzer, had no prior securities trading experience before founding National Money Market Services, Inc. in December 1981. However, in their very first year in business, Philip Kratzer and William Parodi placed approximately $1 BILLION in funds; earning $2.1 million in commissions. By 1983, placements had soared to $5.6 BILLION; bringing in $6.8 million in commissions.

Outcome of federal and state investigations are unknown. However, as indicated above, by latter 1986, Bill Parodi and his brother were working as brokers at competing national firms. Phil Kratzer continued to operate National Money Market Services, and he and NMMS were also sued in the latter 1980s by one or more California Municipalities which had lost significant monies investing with NMMS.

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ALSO DO YOUR OWN RESEARCH ON THE FOLLOWING INTERTWINED "PARODI FAMILY" OWNED-OPERATED BUSINESSES -- MANY BEING ONLINE PAYMENT PROCESSING BUSINESSES OF CHECKS, CREDIT CARDS, ETC. NOTE THAT THE EXTENDED PARODI FAMILY INCLUDES THREE BROTHERS, THEIR CHILDREN, AND THEIR GRANDCHILDREN.

ACTUM PROCESSING LLC

WEB TRANSACTION SERVICES INC. (aka WTS)

ACHDEBIT.COM

CYBER HOLDINGS INC.

WEB TORMENTA LLC

ELITE SCOUTS LLC

CYBER SWELL MANAGEMENT LLC

NETVENTURES INC

XJZ HOLDINGS LLC

COMPUAD INC

UNITED AMERICAN FINANCIAL GROUP INC.

LORD LOURDES LLC

CURAFLO OF LOS ANGELES (Curaflo is believed to be a JW founded-operated franchise system.)

VP SECURITY SERVICES INC.

MVBP LLC

OVERTON SECURITY SERVICES INC (co-owned by WTS spokesman David Goldfarb)

COMMAND GUARD SERVICES

YOUR BEST DEALS (co-owned by WTS spokeman David Goldfarb)

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DAVID GOLDFARB

WATCHTOWER SPOKESPERSON

A JEWISH JOURNAL article dated October 28, 2004, reported on Austrian Jehovah's Witness Leopold Engleitner's then recent Holocaust-related sermon delivered at the Los Angeles Museum of Tolerance. The WatchTower Society's Media Department apparently arranged for the attendance of a Jewish Journal reporter, plus arranged for the Jewish Journal reporter to interview the WatchTower Society's Los Angeles-area spokesperson, David Goldfarb, whom the reporter described in his article as "a Jehovah's Witness church leader in Beverly Hills who grew up Jewish and became a Jehovah's Witness at age 15."

WatchTower Society spokesperson David Goldfarb is also a member of the Board Of Directors at the Los Angeles Museum of the Holocaust. An online David Goldfarb resume indicates that Goldfarb has participated in significant fund-raising for the Los Angeles Museum of the Holocaust.

In June 2008, David Goldfarb spoke at a UCLA School of Medicine seminar promoting the WatchTower Society's prohibition against Jehovah's Witnesses receiving blood transfusions. David Goldfarb's title was listed at the UCLA seminar as, "Chairman, Los Angeles Hospital Liaison Committee for Jehovah's Witnesses". David Goldfarb has been a member of the Los Angeles County Hospital Liaison Committee for Jehovah's Witnesses since 1992.

A LOS ANGELES TIMES article dated February 2, 2012, reported on a Los Angeles area doctor who had been treating Jehovah's Witnesses with leukemia without the normal use of blood transfusions. Quoted at the beginning of the article, and possibly the person who arranged this media event, was David Goldfarb, whom the reporter described as "chairman of the Los Angeles-area Hospital Liaison Committee for the Jehovah's Witnesses."

According to its 1990 corporation filing, David Goldfarb was one of the two founding members of the Virginia Avenue Congregation of Jehovah's Witnesses in Santa Monica, California.

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Some of multi-millionaire Jehovah's Witness businessman David Goldfarb's business activities are also "highly interesting". Since at least the early 1990s, and apparently continuing up until just recently, David Goldfarb has been a business partner/associate with another Los Angeles-area Jehovah's Witness named Bill Parodi -- not just in one business, but in multiple business ventures. Some of Bill Parodi's business-related legal interactions are summarized below.

FEDERAL TRADE COMMISSION v. KENNETH TAVES ET AL is a 1999-2000 California federal civil lawsuit in which the F.T.C. prosecuted an INTERNET PORNOGRAPHER for fraudulently charging the credit/debit cards of thousands of persons who had never ever visited one of his 14 PORN websites. At the time, this prosecution was lauded as both the LARGEST CASE EVER involving Pornography, and the LARGEST CASE EVER involving credit card related fraud. The credit/debit card processing service company which acted as the intermediary between Taves, Taves' bank accounts, and the credit card companies, was a Los Angeles area company called AUTOMATED TRANSACTION SERVICES, INC., which just so happened to be owned by -- guess who -- David Goldfarb and Bill Parodi. David Goldfarb testified for the F.T.C. at the TAVES trial. Interestingly, at trial, Taves asserted that ATS and its two owners were co-conspirators in the credit card "thefts". David Goldfarb not only denied conspiring with Taves, but he denied ever suspecting that Taves was committing credit card fraud.

David Goldfarb testified that Automated Transaction Services processed credit/debit card and electronic check payments for Taves' multiple companies and multiple websites from January 1995 until Taves' operations were shut down in December 1998. David Goldfarb testified that he was personally in charge of handling the Taves account at ATS. Interestingly, in calendar year 1997, ATS deposited just under $5 MILLION into Taves' bank accounts. However, starting in 1998, those ATS deposits suddenly jumped to $4 MILLION and more PER MONTH (after Taves began to charge the cards of thousands of persons who had never visited his websites.) ATS earned upwards of $2.7 MILLION from Taves just in 1998, which Goldfarb testified was around 15% of ATS's total income in 1998.

Goldfarb also testified that Bill Parodi and he established a joint bank account in the Caymen Islands, at Taves' request. That joint account was used to receive payments from ATS owed to Taves, which were then transferred into Taves' own Caymen Island account. That joint account then received payments back from Taves' account which were owing to ATS for services performed for Taves' companies.

David Goldfarb also disclosed that Bill Parodi and he owned part of WORLD BANKCARD ASSOCIATES, INC. (the court record is unclear whether Goldfarb and Parodi EACH owned 15% of World Bankcard, or whether they owned 15% combined), which was another "fee-based support service" company which arranged for Taves and other similarly situated "merchants" who were having problems obtaining bank "merchant accounts" to obtain such from certain cooperating Banks willing to do business with them. (At that time, few Banks wanted to be known as doing business with pornographers. World Bankcard "helped" Taves open a "merchant account" at three different banks, and thereafter received a commission from every deposit made into Taves' accounts. See Newspaper article linked below.)

David Goldfarb also disclosed that ATS actually did business with around 200 INTERNET PORNOGRAPHY COMPANIES, each of which had multiple websites (actually, Goldfarb ballparked the figure at "a couple hundred'). How many internet pornography companies even existed in the Los Angeles area back in the 1990s before every home had a computer? Does anyone else suspect that ATS may have been the California PORN INDUSTRY's "go-to" company for credit card processing? Although Goldfarb and Parodi had only founded ATS sometime in 1994, Taves began doing business with ATS when he started his operations in January 1995. How many Americans had home computers in 1994, and how many retailers and other "merchants" were doing online business in 1994, and needed the services of a company like ATS? ATS referred to itself as a "pioneer" in the credit card service industry for a reason -- it was.

Despite David Goldfarb's "hmmmm" testimony, the USDC chose to ignore any possibility that Goldfarb, Parodi, and ATS had conspired with Taves. In fact, in its "opinion", the USDC repeatedly had to re-assert the court's continuing belief in Goldfarb's honesty and credibility. (Had the USDC somehow learned that David Goldfarb was a prominent Jehovah's Witness Leader?)

Goldfarb and Parodi later sold ATS in June 1999 -- probably after it became obvious that their business relationship with the PORN INDUSTRY was going to become public knowledge during the TAVES trial proceedings. ATS was "acquired" by Innuity, Inc. David Goldfarb was elected to Innuity's Board of Directors, and he continued to oversee operations at the former ATS, which underwent a name change, until July 2001. It is not known if Bill Parodi continued working at the former ATS after the acquisition. Innuity sold off the former ATS in 2004, and it is still doing business under a different name.

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Click here to read Ken Taves' sworn affidavit given during a later but related 2002 private civil lawsuit, in which Taves alleges that he had no technology background nor skills, and that he depended on the advice and assistance of a network of companies which provided fee-based support services to the PORN industry, including Automated Transaction Services, to handle all of the technological aspects of his operations.

Click "Take The Money and Run (For the Border)" to read author Lewis Perdue's analysis of the TAVES trial in his 2002 book: EROTICA BIZ: How Sex Shaped The Internet.

Click "Porn In The USA" to read a November 2000 newspaper article about the internet Pornography industry and the financial services industry which supported them, including additional information about Kenneth Taves, David Goldfarb, and Automated Transaction Services.

David Goldfarb and Bill Parodi employed a number of their fellow JW Elders, Ministerial Servants, and other JWs, including wives, at Automated Transaction Services, who would have known the identity of ATS's clientele. Andy Varble, aka Andrew Varble, believed to be an "elder" at the Westlake Village Congregation of Jehovah's Witnesses, was ATS's "Business Development Manager". We have identified at least two other managers who probably were JW elders.

Click this AMICUS CURIE BRIEF link to see who the members of the U.S. Congress and U.S. Senate sought out in 1998 to provide them with expert information regarding the intricacies of credit card processing in the Internet Pornography industry. Yes, one of the experts interviewed was a Manager employed at ATS named Scott Lockwood. Google that name along with the keyterms "jehovah's" and "software".

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JERRY STAUFFER v. FEDERAL BUREAU OF PRISONS (2022) reveals that when Wisconsin's Oxford FPC cancelled weekly "Jehovah's Witnesses" services in February 2017 that Jerry Stauffer was the only inmate attendee of services conducted by local Wisconsin Jehovah's Witness Elder Ron Kneifel, aka Ronald Kneifel. (Services at Oxford FPC may have been started for Stauffer given his June 2016 sentencing.) Transferred to Minnesota due to advancing age reasons, Jerry M. Stauffer (b1948) thereafter attempted unsuccessfully to keep this lawsuit "moot" by alleging that "Jehovah's Witnesses should be part of the regularly scheduled religious services at Oxford FPC" irregardless of Stauffer's absence.

UNITED STATES v. JERRY M. STAUFFER was a 2015-17 Michigan PONZI SCHEME federal prosecution. In 2016, Jerry Stauffer was convicted by a federal jury of one count each of wire fraud and money laundering, in connection with a foreign-currency-exchange (Forex) Ponzi scheme, and was sentenced to two 120-month concurrent sentences. His sentencing guidelines included a commodities-law enhancement and an obstruction-of-justice adjustment. Ordered restitution was $845,679.00.

Jerry M. Stauffer was a resident of Traverse City, Michigan, where he operated a boat-brokerage business named Atlantic Boat Brokers. At some point, Jerry Stauffer began to misrepresent himself as a Forex expert to certain ignorant and gullible local residents. Between 2009 and 2015, Stauffer accepted $1.8 MILLION from 15 persons in Michigan to trade on the Forex market. In return, Stauffer was to receive a share of the trading profits. Investors received monthly brokerage statements showing that Stauffer was trading with their money as promised, and, in several cases, that their investments were performing well. In reality, Stauffer traded very little, if any, investor funds. Jerry Stauffer's Forex trading was merely the cover for a Ponzi scheme. The statements were forged, and the profits were imaginary. After Stauffer told investors that he lost their money in a hack of his brokerage account, the Federal Bureau of Investigation (FBI), Internal Revenue Service (IRS), and Commodity Futures Trading Commission (CFTC) opened criminal and civil investigations. In February 2015, Jerry M. Stauffer was indicted on one count each of wire fraud and money laundering.

At trial, several investors testified regarding how they came to invest with Stauffer, the representations he made to them, and the hacking story he told when the scheme began to fall apart. Doug Baker testified that after he learned that Stauffer was a Forex trader, Douglas Baker asked to invest and signed an agreement allowing Stauffer to trade foreign currency on his behalf, making an initial investment of $20,000. The contract provided that the investment would be part of a common fund with a target 5% monthly compounding return, that Stauffer was not permitted to use funds for personal use, and that he would receive a share of any profits. Doug Baker made subsequent investments totaling $350,000. Each month, Douglas Baker received payments and account statements purporting to be from the United Kingdom branch of Interactive Brokers (IB), an Internet-based broker. (JW Insiders will recall that there is a RICH NATIONALLY PROMINENT JW FAMILY named "Baker" in downstate Michigan, but we have no idea whether the above "Baker" is part of that JW family.)

The payments stopped after July 2013, however, when Stauffer sent an email to Douglas Baker explaining that his online IB account had been hacked and a "considerable amount" of the funds were lost by the hacker making money-losing trades. Doug Baker received a statement in July 2013 that purported to be for IB account "U90", with an opening balance of $890,322.40 and a closing balance of $192,450. The statement also indicated that the U90 account had margin-trading capabilities.

IB's records contradicted Stauffer's hacking story. Brad Klauseger, an employee in IB's compliance department, testified that IB maintains a database recording all trading activity in an account, and that no two accounts have the same number. IB's records showed that Stauffer had two accounts, "U90" and "U10". The U90 account was opened in June 2010 as an "individual" non-margin account, and was closed in September 2010 without ever being funded. The U10 account permitted currency conversion, but not leveraged Forex trading; it was opened in August 2012 and was funded once with $10,000. The Government introduced as exhibits IB statements Stauffer had sent to investors. Klauseger testified that these statements were not genuine because the notations and trading activity they reflected were inconsistent with the records in IB's database. For example, a purported statement showed the U90 account as being an "advisor" and "margin account", when in reality it was a non-margin "individual" account; the statements also falsely showed that Stauffer's accounts were with IB's United Kingdom, rather than the United States, branch.

The trial lasted four days; the defense presented no evidence and Jerry Stauffer did not testify. In its closing argument, the Government argued that Stauffer accepted funds on the false pretense that they would be added to his Forex fund and invested. Instead, he forged IB statements to make it appear as if he was actively engaged in Forex trading, used investors' funds in a Ponzi-scheme-like manner (diverting money to personal use -- such as paying living expenses and credit-card debt -- while using later investments to pay "profits" on earlier investments), and falsely claimed to have been the victim of a hack to cover up the resulting losses. In his closing argument, Jerry Stauffer argued that he did operate a Forex fund just as he had told investors, that his hacking story was true and the IB statements he gave investors were genuine, and that the Government failed to investigate IB's records or security practices. The jury convicted Jerry M. Stauffer of both counts.

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SECURITIES AND EXCHANGE COMMISSION v. MICHAEL BRENT ROTHENBERG was a 2018-19 California federal civil court case. ROTHENBERG VENTURES was founded in 2012 by then 28 year-old Michael B. Rothenberg, who was reared in a VERY PROSPEROUS tight-knit, extended, multi-generation Jehovah's Witness family in/around Georgetown, Texas. Michael Rothenberg's (plus two brothers and one sister) "strict" Jehovah's Witness Parents include a father, Robert D. Rothenberg, who is a prosperous Real Estate developer and agent, and a mother, Patricia McMillan Rothenberg, who was a math teacher at Georgetown High School (See R. D. McMILLAN COMPANY). Mike Rothenberg holds a Masters degree from Stanford and a M.B.A. from Harvard. Along with 14 "limited partners", including his Jehovah's Witness Parents, Mike Rothenberg founded ROTHENBERG VENTURES in 2012. Rothenberg changed the name of his company in September 2016 to FRONTIER TECHNOLOGY VENTURE CAPITAL. On December 20, 2019, a federal district court ordered Michael B. Rothenberg to pay more than $31 million in disgorgement, prejudgment interest, and penalties in connection with the misappropriation of investor money.

In August 2016, multiple investment and technology websites began reporting that this San Francisco, California based venture capital firm had admitted that it was then being investigated by the S.E.C. after a former employee filed a "whistleblower" complaint in July 2016. Three additional former employees reportedly filed unpaid wage claims with the California Division of Labor Standards Enforcement. A fourth former employee reportedly filed a civil lawsuit seeking reimbursement of business related expenses amounting to nearly $110,000.00. The City of San Francisco reportedly also filed a zoning complaint accusing Rothenberg of operating a business in a rented property zoned as "residential". Outcomes pending.

The SEC's complaint, filed in August 2018, alleged that Rothenberg marketed ROTHENBERG VENTURES a/k/a FRONTIER TECHNOLOGY VENTURE CAPITAL as uniquely positioned to identify millennial entrepreneurs and invest in "frontier technology" companies. Rothenberg and his firm allegedly misappropriated millions of dollars from the firm's funds, which Rothenberg used to support personal business ventures he claimed were self-funded and to pay for private parties and events at high-end resorts and Bay Area sporting arenas.

Without admitting or denying the allegations in the complaint, Rothenberg previously consented to the entry of a final judgment enjoining him from violating the anti-fraud provisions of the Investment Advisers Act, which was approved by the court on October 17, 2018. Rothenberg also agreed to be barred from the securities industry with a right to reapply after five years. Further, Rothenberg and the SEC agreed to have the court determine any monetary relief. The U.S. District Court granted the SEC's motion, ordering Rothenberg to pay disgorgement of $18,776,800, prejudgment interest of $3,663,323, and a civil penalty of $9,000,000.

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UNITED STATES v. MICHAEL BRENT ROTHENBERG is an ongoing 2020-23 California federal criminal prosecution. Michael Rothenberg has been charged with 23 counts of criminal conduct stemming from his alleged fraudulent activities as founder of Rothenberg Ventures Management Company, LLC. The Government filed a criminal complaint alleging wire fraud on June 25, 2020. A 23 count waiver-less information and grand jury indictment followed on June 26, 2020 and August 20, 2020 respectively.

Michael Brent Rothenberg, age 36, was charged with 19 felony counts of wire fraud and other crimes in connection with several alleged investment schemes from 2013 to 2016. Mike Rothenberg was alleged to have raised millions of dollars to invest in Silicon Valley start-up companies, but allegedly took much higher fees than those to which he formally agreed. Federal officials said Rothenberg also committed bank fraud with alleged schemes to obtain money to make up for shortfalls in one of the funds he managed. Federal officials allege that, since 2013, Rothenberg fraudulently obtained at least $18.8 million through illegal conduct.

Rothenberg founded a venture capital company, Rothenberg Ventures Management Company, LLC that he used between 2013 and 2016 to raise and manage four annual funds whose purpose was to invest in Silicon Valley start-up companies, mostly those pursuing virtual reality technology.

The complaint alleges Rothenberg partially funded his money commitment to the second of those funds by committing bank fraud when, in 2014, made false statements about his wealth to his bank while refinancing his home mortgage. Federal officials allege that Rothenberg, while obtaining a $300,000 personal loan, poured some of the ill-gotten money he obtained from the bank into that second fund.

Federal officials also contend that, in 2015 Rothenberg took excessive venture capital fees from one of the funds he was managing at his Rothenberg Ventures Management Company, creating a shortfall in that fund he did didn't want his investors to know about. Rothenberg then allegedly engaged in a scheme to defraud a bank by making false statements and misrepresentations to that bank to obtain a $4 million line of credit to pay back the fund from which he had taken excess fees.

In February 2016, officials said, Rothenberg allegedly engaged in a scheme to defraud an investor who believed was investing in a Rothenberg-owned virtual reality content production company, when in fact most of that money is alleged to have gone somewhere else.

Overall, in connections to the above and other allegations, Rothenberg faces two counts of bank fraud, two counts of making a false statement in a loan application to an FDIC-insured lender, 11 counts of wire fraud and four counts of money laundering. Pending.

NOVEMBER 2023 UPDATE: A federal jury has convicted Rothenberg on nearly all counts. Sentencing has been set for March 2024.

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UPDATED 2023

Nearly 500 Canadian and American Jehovah's Witness "True Christians"

For Greedily Financially Backing PAYDAY LOAN Business

An Industry Universally CONDEMNED by "False Christians"

For Preying On Society's Poor and Downtrodden

We finally stumbled across the "math" which gave rise to the greed exhibited by the following Jehovah's Witness investors, and which explains the extremely high default rate (poor repayment rate).

All loans regardless of amount (nearly all loans were less than $500.00) were to be repaid in 20 monthly installments. The various fees, charges, and the interest on all loans, regardless of amount, amounted to 700% of the loaned amount during that 20 month period.

A $200.00 loan was to be repaid at the rate of $70.00 per month for 20 months, totaling $1400.00.

A $500.00 loan was to be repaid at the rate of $175.00 per month for 20 months, totaling $3500.00.

Doris Elizabeth Nelson, age 60, died in June 2019, while serving time in an Alabama medium security federal prison -- purportedly from undiagnosed cancer.

In 2014, Bankruptcy Trustee Bruce Kriegman had managed to recover and distribute to creditors a mere $3.6 million. In 2018, only $1 million. Obtaining "clawback" judgments is easy. Collecting them is another story.

Readers should understand that this Scam has been ongoing for many years, and involves investigations and legal actions by multiple Canadian and American federal and state agencies. Thus, our posted commentary has become quite fragmented over the years as multiple criminal, civil, and bankruptcy court cases have been initiated and we awaited the outcomes. Many of the court cases are still ongoing, so there is little point in attempting to put together one nice summary until such are resolved. We suggest reading our postings, and then if you are still interested in this case, then start googling the various keyterms for much more additional info published online.

2011 UPDATE --- UNITED STATES v. DORIS NELSON. In September 2011, the federal Securities and Exchange Commission charged Doris Nelson with operating an illegal Ponzi Scheme in which she defrauded investors in her company, Little Loan Shoppe, by misrepresenting the profitability and safety of their investments and giving them the false impression that their money was being used to grow her business. Nelson allegedly used the vast majority of new investor money to repay principal and purported returns to earlier investors. Nelson also allegedly used millions of dollars in investor funds for her own personal use.

REIBLING FAMILY INVOLVEMENT

Lorenz Reibling, possibly the world's wealthiest Jehovah's Witness Elder, occasional WatchTower Society spokesperson and project financier, and Chairman of TAURUS INVESTMENTS HOLDINGS LLC, and its worldwide subsidiaries TAURUS UK, TAURUS OF TEXAS, TAURUS AMERICAS, TAURUS INDIA, TAURUS OF GREECE, TAURUS EURASIA, etc., is listed as the sixth largest unsecured creditor in the LLS AMERICA LLC Bankruptcy Petition -- $1,500,000.00.

BRUCE P. KRIEGMAN v. LORENZ & LAURA REIBLING REVOCABLE TRUST (2011-13). Settled.

BRUCE P. KRIEGMAN v. CHRISTOPHER CHARLES REIBLING, BRUCE P. KRIEGMAN v. MATTHEW GUENTHER REIBLING, and BRUCE P. KRIEGMAN v. TIMOTHY DAVID REIBLING. Matthew Reibling, Christopher Reibling, and Timothy Reibling (all sons of Guenther Reibling -- deceased 2020 brother/business partner of Lorenz Reibling Jr.) are named as defendants in the Bankruptcy Trustee's multiple "clawback" actions relating to LLS AMERICA LLC. Investment amounts unknown. Outcomes unknown.

Lorenz Reibling's and Taurus Investment Holdings LLC's personal and business connections to the WatchTower Bible and Tract Society and Jehovah's Witnesses are so many and varied that readers interested in such should simply "google" the various permutations of all the key names and key terms.

BRUCE KRIEGMAN v. MARK BIGELOW ET AL (2012) [Mark A. Bigelow once was a WatchTower Society Circuit Overseer. For real enlightenment, tab down this same page while looking for the name of the "Congregation Servant" in the LINKED (above) photo. Ed Spitzke also got scammed around the same time as did Mark Bigelow in a second, different JW-ran "get-rich-quick" ponzi scheme. One can only wonder what the two JWs might have had in common?]

The following lists of "Defendants" appear in the Bankruptcy Trustee's "clawback" lawsuits:

0720787 BC Ltd, 0720789 BC Ltd, 0817726 BC Ltd, 0827213 BC Ltd, 458124 BC Ltd, 692323 Capital Inc, 9 to 5 Ventures, Harvey Anderson, Rachel Anderson, BBI Group Investments, Amar Bains, Diane Barry, Donald Barry, Brian Beach, Heino Beens, Diane Bjarnason, Lois Bjarnason, Wentworth Bjarnason, Carmen Brackett, Dale Brackett, Raymond Burron, Jill Cabana, Wayne Cabana Jr, Christine Chick, Terry Chick, Gregory Clarke, Sharon Clarke, Bev Coello, Dave Coello, Kenneth Cunningham, Cunningham, Harold Demmons, Eleanor Dimler, Michael Dorval, Carol Dyer, Ross Dyer, Dale Elford, Evelyn Elford, Estate of Dharam Samra, Anthony Evans, John Evans, Susan Evans, Brenda Ewington, Peter Ewington, David Fallis, Blanche Filmore, Cliff Filmore, Sheldon Frank, Nick Georgopoulos, Mike Graham, Diane Grande, Frank Grande, Harrison Bay Dairy Farm Ltd, Bruno Hintz, Esmonde Holowaty, Angela Honsberger, David Honsberger, Barbara James, Doug James, Annette Johnston, Linda Kazakoff, Matt Kazakoff, Anita Kranz, Gerhard Krief, Debbie Krysciak, Jean Lamb, Doug Lamb, Marion Lambertus, MBC Enterprises, Iris MacDonald, Joe MacPherson, Theresa MacPherson, Eleonora Matkovic, Zvdravko Matkovic, Cole McDonald, Judith McMillian, Cliff Michael, Margaret Miller, Steven Miller, Angela Mirrow, Jim Nash, Elaine Nichols, Stephen Nunuk, Danielle Padgham, Erin Padgham, Gary Padgham, Iris Padgham, Jayden Pakosh, Penny Pakosh, Rod Pakosh, Lorrie Penteluke, Louise Picton, Glenda Popowich, Thomas Popowich, Marcelle Power, Mike Power, Diana Pozzi, Mataya Reid, Kathy Roberts, Camilla Romani-Davies, Jackson Saunders, Mary Scheuermann, Martha Schultz, Alfonzo Serrano, Steven Serrano, Kristen Storey, Elaine Studenskey, TWL Construction Ltd, Anna Tarantino, Mario Tarantino, Lois Taylor, Ron Taylor, Phil Temperton, Jay Tomlin, Diana Tymkow, Stan Tymkow, Markus Unglert, Eric Van Dyk, Suzanne Vaughan, Ed Wells, Pamela Wells, Cory Werstiuk.

267406 BC LTD, 473513 BC LTD, Dorothy Alexander, Bob Alton, Bonnie Alton, Jeremy Andres, Kristen Andres, Kenneth Appeldoorne, Amberlee Aronson, Harold Aronson, Wayne Barr, Evan Bawa, Amy Belling, Ewaa Berndt, Steven Berndt, Leah Bowie, Matthew Bowolin, Shanna Bowolin, Hermail Brar, Graham Campbell, Karen Campbell, Kim Carol, Rob Carol, Steen Carstensen, C. and J. Chomiak, Chantelle Clarke, George Cole, Linda Cole, Cheryl Cressman, Wayne Cressman, Susan Day, Paula Donald, Freesia Dorval, Alena Dumont, Jean Francois Dumont, Brena Eisler, Glen Eisler, Angela Freimuth, Troy Freimuth, Dartanali Geib, Patricia Godbehere, Bill Godfrey, Lorraine Goorts, Martin Goorts, Brenda Graham, Greyfriars Realty, Nicole Haer, Brenda Hahn, Harold Hamilton, Rhonda Harris, Carmen Holdner, Edwin Holdner, Marvin Hyatt, Inland Investments, Ken Ipsen, Shirley Ipsen, Gerritt Keizer, Alan Kemp, Christine Kemp, Don Kennedy, Kirkwood Kitchens Inc, Tammy Kivell, Gary Kronebusch, Loma Rae Kronebusch, Faustina Lauridsen, Frank LeClair, Mary LeClair, Lyle Lockhart, Haldis Loucks, James Loucks, LeRoy Mann, Sharla Miller, Ann Moore, Brian Moore, Rhonda Morwick, Myriad Investments, Douglas Neal, Lorraine Neal, Beverly Olsen, Chris Olsen, Tiffany Olsen, Lisa Sarah Omand, Gino Panucci, Shelly Panucci, Ed Parent, Jessica Parent, Justin Parent, Natalie Parent, Manjit Parmar, Ann Patterson, Reinhard Paul, Mary Peters, Miranda Pope, Tristan Pope, Jan Power, Fred Rebelato, Laurenda Rebelato, Rist Accessories Inc, Jauffrey Romani, S. and W. Forest Productions, Dave Sanderson, Marie Sanderson, Luke Saunders, Angela Scheck, Robert Scheck, Michelle Sherwood, Fay Snyder, Ted Snyder, Jeff Stephenson, Carrera Stevens, Mark Stuyt, Sharka Stuyt, Greg P Toews, Adele Trottier, Eric Van Dyk, Elizabeth Weinberger-Van Dyk, Elsie Wruck, Leonard Wruck, Glenn Yamada, Mel Yargeau, James Young, James Zannet, Zannet Sprinkler Systems.

Nicholas Blea, Phyllis Blea, Kenny Canard, Susan Clarke, Burlyn Collar, Eric Collar, Linda Collar, Brian Cooper, Ruth Cooper, Frank D'Alessandro, Lauren D'Alessandro, Randall Freitas, Erick Garcia, Hitech Investments, Todd Hoskins, Jeff Hughes, Tabitha Hughes, Shelley Jellum, Arlene Johanson, Janice Johnson, Larry Johnson, Joseph and Cecile Zientara Trust, Aaron Kancevicius, Dathan Kern, Julie Kern, Natasha Khan, Nathan Koch, Kathleen Kohler, Norbert Kohler, Connie Konsulis, Kathy Kroske, Terry Kroske, Gary Leonard, Janet Leonard, Michael Lewis, Rene Lewis, John Mayer, Julie Mayfield, Jemima McCullum, Stewart McCullum, Mobile Enterprise Inc, Myra Munday, Hannah Naleid, Mary Naleid, Lisa Nicholson, Susan Nicholson, James Pells, Susan Pells, Rebecca Piatt, Rita Prater, Lindsay Renee Prater, Christopher Reibling, Matthew Reibling, Tim Reibling, Karen Reiner, Kelly Rice, Stephen Ruppert, SPS Holding, Mary K Schneider, Gary Schultz, Jeff Seguin, Michael Seguin, Teresa Semler, Shirley Hensley Revocable Living Trust, Donna Smoker, Lowell Smoker, Marc Smoot, Rhonda Smoot, Amy Stephenson, Jared Stephenson, Jason Stephenson, Stephanie Stephenson, Joan Steward, Wayne Steward, John Stewart, Patricia Stewart, Sunset Development Properties LLC, Frances Taormina, Harry Taormina, Taormina Family Trust, Amber Tuharsky, Jaime Tuharsky, Kristen Verbeek, Shawn Verbeek, Holly Wickersham, Joshua Wickersham, Becky Wilken, Calvin Wilken, Leroy Williams, Amanda Wood, Glena Wood, David Marshall Wood, Joseph J Zientara.

Anthony Alfarone, Ashli Alfarone, Langston Alfarone, Mark Alfarone, Michael Alfarone, Bernice Alford, Thomas Alford, Linda Ballard, Ron Ballard, Raynald Beauchemin, Sandy Beauchemin, Ken Boisvert, Laurie Boisvert, Patrick Bowers, Alexandra Bravo, Cesar Bravo, Jose Bravo, Luz Bravo, Robert Brodie, Robert Christin, Gary Coutard, Frank D'Alessandro, Lauren D'Alessandro, DNH Construction, Jason Eidinger, Arthur Fitzpatrick, Stephanie Fitzpatrick, Rebecca Fulcher, C. Daniel Fulcher, George Hermann Living Trust, Bernice Goldstein, Moss Goldstein, Barbara Green, Joseph Green, Greenwood Development Defined Pension Plan, Hasty Charitable Remainder Trust, Martha Holinka, Noel E Holinka, Chris Jellum, Shelley Jellum, Pamela Jonson, Richard Jordan, Joseph J Zientara and Cecil Zientara Trust, Craig Lyons, Richard Malet-Veale, Candy McCrillis, Duane McCrillis, Jemima McCullum, Stewart McCullum, Bonnie Miller, Brandon Miller, Kristen Miller, Richard Miller, James Mollenkopf, Nancy Mollenkopf, Ann Moore, Brian Moore, Jennifer Nicholson, Jackie Noel, Kathleen Noel, OFS Operating LLC, John Overdorff, Edmund Oxley, Linda Oxley, Karen Poole-Hermann, Thomas Raine, Seth Ronan, Ryan Roumanada, David P Smith, Joseph Stallo, Douglas Stanley, Terry Stanley, Rocky Stewart, John Stout, Jose - Torres, Ruth Tucker, United Commerce Defined Benefit Plan & Trust, Lois Vannerson, Rodney Welch, Carole Wickersham, Louis Wickersham, Joseph J Zientara.

Anthony Alfarone, Mark Bigelow, Donald Breaux, Maureen Breaux, Katherine Brown, Gerald Brown, Anthony Cilwa, Victoria Cilwa, Alice Clawson, Dale Clawson, Deborah Cummings, Richard Cummings, Luella Currigan, Mike Currigan, Richard Deweese, Sharon Deweese, Anthony Di Russo Jr., Lois Di Russo, David Dipple, Debra Dipple, DMC Automotive, Inc., William Garrett, Jeanne Garrett, Thomas Garrett, Wendy Hanes, William Hanes, Hasty Charitable Remainder Trust, David Holland, Tarrah Holland, Harold Janvary, Harold Johanson, Gregory King, Sarah King, Cheri Knight-Abney, Margaret Koblein, Kathy Krenk, Larry Krenk, Penny Landau, Peter Landau, Dale Laviolette, Betty Lyons, William Lyons, Barbara Marifian, George Marifan, John Marifian, David Marshall, Jessica May, John McLaughlin, Micah May, Maureen Mayer, Fatima Mirrow, Seymour Mirrow, Matthew Munday, Dr. Ken Phillips, Karen Poole-Herman, Joseph Prater, Rita Prater, Thomas Raine, Frederick Reynolds, Jane Ritter, Marc Ritter, Collin Rogers, Save-It LLC, Connie Sawyer, Dennis Sawyer, James Seville, Marlen Seville, Heidi Schulze, Lorraine Shannon, Gale Simpson, James Simpson, Dave Smith Motors, Jeff Smith, Andrew Stack, Ann Stack, Elisabeth Stack, David Dean Stack, Stellar Investments Inc, T & J Enterprises, Frances Taormina, Harry Taormina, John Taormina, Taormina Family Trust, Linda Titmas, Russell Titmas, Trent Holdings LLC, Mike Tullos, Wendle Motors, Inc., West Side Motor Sports, Amanda Wood, Deborah Yarbrough.

KRIEGMAN v. HEIDI SCHULZE, GUNRUN FOERSTNER, TYLER FOERSTNER, AND 685937 BC LTD. Edited excerpts:

Defendants Gudrun Foerstner, Tyler Foerstner, and Heidi Schulze are "net winners." ... There is no evidence that Defendants conducted any meaningful due diligence prior to investing in Debtor. ... Defendants were promised high rates of return from Debtor. ... Defendants Gudrun Foerstner, Tyler Foerstner, and 685937 BC Ltd. loaned funds to Debtor after Debtor had "rolled" earlier loans into new promissory notes when payment became due. ... There is no indication in the record that Defendants received financial statements from Debtor. ... Defendant Gudrun Foerstner invested additional money in Debtor and continued to receive transfers from Debtor even after Debtor had informed her that her promissory notes would be backdated three or four years and after Debtor had asked Defendant Gudrun Foerstner not to disclose to investigators the name "Little Loan Shoppe." ... Defendant Tyler Foerstner recruited at least one other person to invest in Debtor and issued the investor a promissory note from himself rather than from Debtor. ... Defendant Tyler Foerstner then invested the person's funds in Debtor. Defendants failed to meet their burden to establish good faith and, thus, Defendants are required to return the entire amount of the transfers they received, including principal and interest.

Trustee ... is granted a judgment ... against Heidi Schulze in the amount of $142,187.33 USD, plus pre-judgment interest ...

Trustee is entitled to claw back and recover all transfers to Defendants. Trustee ... is granted a judgment ... against Gudrun Foerstner in the amount of $575,526.53 CAD and $7,733.14 USD, plus pre-judgment interest ...

Trustee ... is granted a judgment ... against Tyler Foerstner in the amount of $641,650.00 CAD, plus pre-judgment interest

Trustee ... is granted a judgment ... against 685937 BC Ltd. in the amount of $989,235.04 CAD and $20,400.00 USD, plus pre-judgment interest ...

Per below, Heidi MIRROW Schulze died of ???? in 2013. Note the request for a "DONATION" in the last line of the following obituary. What are the odds that Heidi's wealthy relatives stepped up and paid this debt?

Heidi Mirrrow Schulze Obituary. A generous and loving heart has left behind a legacy of strength and empowerment in the lives of countless Houstonians. Heidi Schulze born May 2, 1956 passed away on May 27, 2013 in Houston, Texas after losing her battle with ovarian cancer and complications from numerous strokes. In death as in life, she was surrounded by her loving family. Heidi was born in New York City and is survived by her beloved parents -- Seymour and Fatima Mirrow, brother and sister in law -- Alex and Angela Mirrow, nieces -- Jasmine Mirrow and Serena Mirrow, brother and sister in law -- Eric and Dareena Mirrow. Heidi was one of Jehovah's Witnesses and she held a strong testimony and a hope of an eternal resurrection to life on a paradise earth, John 5:28-29 - Revelation21:3-4. Her faith and family were the strength of her life. She had a special love for her nieces and enjoyed sharing a great laugh at life together. Her life touched countless women as a beauty coach and makeup artist through her business, StarMaker. Her boutique brand found for decades in Houston's finest salons, Solution for Hair & Makeup owned by good friend Mark Horn, Michael Kemper Salon and Urban Retreat was her life work. At times in her career Heidi worked on the most famous of stars to include all of the ladies on the TV show Designing Women, men like Patrick Swayze, local socialites and friends like Joanne Herring and TV personalities like Bob Costas and her good friend Hannah Storm. She did the makeup for thousands of brides often driving to areas she had never been before to give a bride an extra boost of confidence by doing her make-up. Whoever she was helping, she was passionate about the results and found great personal satisfaction in the smiles of those who discovered a new sense of confidence through her work. Her career and philanthropic work took her around the country empowering women to discover their inner beauty while also enhancing their exterior beauty. She will be missed by many in Houston and beyond who considered her a true friend, a candid advisor and very loyal confidant. Heidi lived a life in 57 years that was bigger than most that make it to 100. She was a strong, faith filled, compassionate and talented woman whose presence filled a room and whose generous and kind spirit will be greatly missed by those she touched. Services are: 2 pm Saturday June 1 at Kingdom Hall of Jehovah's Witnesses, 5303 Yale St, Houston, TX 77091. For those that would like to make a donation please send to: Heidi Schulze, 1222 Jackson Blvd, Houston, TX 77006.

BRUCE KRIEGMAN v. LAZY M LLC, Pacifica Ventures, Inc., Daljit Haer, Anthony Cilwa, Victoria Cilwa, Mark Trikowsky, Beverly Gyenizse, Frank Gyenizse, Othelia Spare, David Perry, Ronald Ponton, Sr., Tomika Ponton, David [Armstrong], Shelly Armstrong, Et Al.

United States District Court, E.D. Washington.

Defendant [David] Perry was in his seventies and living in [Sri Lanka] when he learned of the opportunity to invest in Debtor from a close friend, Alex Mirrow. ...

[13]c. Debtor paid commissions to third parties who solicited new lenders, typically 10% of the amount received from the new lender; ...

21. ... Trustee is entitled to and is granted a judgment ... against [Frank Gyenizse] and Beverly Gyenizse in the amount of $43,953.00 CAD, plus pre-judgment interest from July 21, 2009, ...

22. ... Trustee is entitled to and is granted a judgment ... against Daljit Haer in the amount of $117,616.50 CAD, plus pre-judgment interest ...

23. ...Trustee is entitled to and is granted a judgment ... against Ronald Ponton, Sr. and Tomika Ponton in the amount of $117,411.00 USD, plus pre-judgment interest ...

24. ... Trustee is entitled to and is granted a judgment ... against Pacifica Ventures, Inc. in the amount of $85,447.00 USD, plus pre-judgment interest ...

25. .... Trustee is entitled to and is granted a judgment ... against David Perry in the amount of $70,025.00 USD, plus pre-judgment interest ...

26. ...Trustee is entitled to and is granted a judgment ... against David [Armstrong] and Shelly Armstrong in the amount of $495,442.56 USD, plus pre-judgment interest ...

27. ... Trustee is entitled to and is granted a judgment ... against Lazy M, LLC in the amount of $400,707.35 USD, plus pre-judgment interest ...

BRITISH COLUMBIA SECURITIES COMMISSION v. DORIS ELIZABETH NELSON was a 2009-2016 Canadian civil prosecution of Doris E. Nelson. The BCSC panel fined and permanently banned Doris Elizabeth Nelson from the province's capital markets for fraud, illegally distributing securities, and lying to a commission investigator. The panel found that Nelson perpetrated fraud on at least 121 British Columbia investors, who invested at least CDN $19,000,000.00 -- approximately $18.5 million remains outstanding -- in multiple transactions. The panel also found that Nelson distributed promissory notes in contravention of securities laws concerning prospectus requirements to 47 investors who invested a total of CDN $3,074,900.00 and USD $73,000.00. The panel ordered that Nelson pay to the commission the $18.5 million, plus ordered that Nelson pay an administrative penalty of $18.5 million. Uncollectible!!!

KRIEGMAN v. KEITH H. ALEXANDER ET AL. In January 2015, the USDC in Washington state granted a judgment to Trustee in the amount of $1,857,890.00 CAD, plus interest, against Keith Alexander and 1127477 Alberta Ltd. The court particularly noted that during the end of this scheme, Keith Alexander transferred money out of 1127477 Alberta Ltd. to himself, his stepfather, Brian Alexander, his mother Kathy Alexander, and to Kaos Enterprises, which also was owned by Alexander.

BRITISH COLUMBIA SECURITIES COMMISSION v. KEITH HENRY ALEXANDER was a "settled" 2014-15 Canadian civil prosecution of Canadian citizen Keith H. Alexander. Alexander admitted that he engaged in unregistered trading and illegal distribution of securities relating to the Little Loan Shoppe scam. Keith Alexander, a B.C. resident, raised approximately $1,440,000.00 from 13 investors between February 2007 and September 2008.

Keith Alexander formed two companies to serve as "feeders" into the Little Loan Shoppe -- "1127477 Alberta Ltd" and "0827213 British Columbia Ltd". Alexander used the investor funds to buy promissory notes from the Little Loan Shoppe in the names of these companies. He, in turn, issued promissory notes to the investors promising to pay them 40% interest, while Nelson paid him 60% interest. The Ponzi scheme collapsed around April 2009, and investors stopped receiving interest payments from Alexander around late 2008 and early 2009. Alexander lost his own money in the scheme, both through investments of his own, and by buying the positions of investors who wanted to cash out. Alexander also returned $143,000.00 to investors.

Alexander has agreed to pay fine/penalties to the BCSC of $7,500.00, as well as refund $20,000.00 to one investor in which the transaction did not qualify for a prospectus exemption, thereby rendering it an illegal distribution. Alexander was also prohibited from trading in securities and engaging in other investment activities for three years.

DERECK RENBERG, TRINA RENBERG, AND SHARON RENBERG v. KEITH ALEXANDER, KARI LYNN ALEXANDER, BRIAN ALEXANDER, ET AL was a 2013 British Columbia civil lawsuit in which one family of victims attempted to recover $150,000.00 from their former friends. Outcome unknown.

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NOVEMBER 2014: On 11/03/2014, Doris Elizabeth Nelson, who pleaded guilty in April 2014 to 110 counts of wire fraud, mail fraud, and money laundering, but refused to make a plea deal, "made out like a bandit" by receiving an extremely favorable sentencing from USDC Judge Robert Whaley. In this single criminal prosecution, Judge Whaley refused to rule Doris Nelson's business activities to be a "Ponzi Scheme", thus making Nelson eligible for a much lessor prison term. Whaley sentenced Nelson to a mere 9 years in prison, and even allowed her to self-report.

BANKRUPTCY TRUSTEE v. CLIFF YARBROUGH, DEBORAH YARBROUGH, MARION YARBROUGH, and WATCH TOWER BIBLE & TRACT SOCIETY is what we suspect to be an ongoing "clawback" lawsuit amongst a series of such lawsuits filed by the Bankruptcy Trustee attempting to recover monies paid to parties who loaned to and were repaid by the operators of this PONZI SCHEME. This LINK will take you to the February 2014 court order consolidating this case with another apparently similar case. We are not yet able to define the WatchTower Society's role in this court case or the overall Ponzi Scheme.

BANKRUPTCY TRUSTEE v. PAUL COOPER and DIANE COOPER; ALEX MIRROW and SAVE IT LLC; AND DAVID DILL, KEVIN DILL, LILLIAN DILL, TRACEY DILL, ROBERT DILL JR., ROBERT DILL SR., and LILROB LTD. is a 2013 Washington federal bankruptcy "clawback" lawsuit. The linked Decision is definitely worth the read. Edited excerpts:

Paul and Diane Cooper. Paul Cooper recruited 269 lenders. ... Cooper not only recruited lenders, he stepped into the role of administrator of the Ponzi scheme, became a business advisor to [Doris Nelson], and prepared, composed, or edited letters from Doris Nelson to other Lenders. All acts by Cooper were for the benefit of [Paul Cooper] and [Diane Cooper]. ... Cooper invested $78,540.00 ... Cooper received commissions in the amount of $1,225,000.00 from [Doris Nelson] ... Cooper received additional commissions through self-help remedies in the amount of $250,000.00. ... Cooper received interest and principal payments from [Doris Nelson]. Transfers to ... Cooper total $2,799,426.00. ... Cooper did not file a proof of claim in Debtor's bankruptcy. ... Cooper did not attend trial, participate at trial, or offer any evidence; ... ... ...

[Alexander Daniel Mirrow], Save It, LLC, and A & A Rocky Mountain Enterprises. Alex Mirrow began investing with [Doris Nelson] in December 2005 ... he requested [Doris Nelson] to make payments in his own name and in the names of Save It, LLC, and A & A Rocky Mountain Industries. [Trustee] contends that [Alex Mirrow] invested $824,980.00 in [Little Loan Shoppe] and received credits from {Doris Nelson] in the amount of $1,367,177.33. ...

At least one of [Alexander Mirrow's] requests for financial information stemmed from his efforts to convince other people to invest. In an email dated April 19, 2006, [Alexander D. Mirrow] wrote the following:

"Everyone is asking for financials or tax returns on the company. We have plenty of money promised from major investors however they are all withholding until I can get them the info. We should make them sign a confidentiality and non-disclosure agreement before we provide that. They are all willing to sign. Please ask your attorney to provide one immediately as these are fairly standard and he should have one on file or can create one in an hour or so. Also please ask the accountant to provide a financial statement or last years [sic] tax returns right away. Tomorrow we should have the 200k into the Wells Fargo acct. We would have had it today except that the major investor that committed to it backed out when we couldn't provide the financials."

[Doris Nelson]'s continued failure to provide definite financial information should have alerted [Alex Mirrow] to the possibility that the investment scheme was not legitimate. ...

... [Alex] Mirrow's emails from as early as 2005 support the conclusion that [Alex Mirrow] was in fact a sophisticated investor who knew or should have known of the fraudulent nature of [Doris Nelson]'s enterprise. [Alex Mirrow] was aware of the need to include language in agreements to protect investors from the possibility of losing their money in the event that [Doris Nelson] died or divorced, and he knew of the risk of lawsuits against payday loan companies. ... [Alex Mirrow] wrote to [Paul Cooper] in a 2005 email that:

"I understand that currently the District Attorney of Colorado is going after pay day advance company's [sic] just like [LLS AMERICA] that operate in Colorado. ... Remember, in some states like Colorado the penalty for violation of usury laws is LOSS OF THE PRINCIPLE!!! [sic]." ...

Even Mr. Mirrow's use of the term "usury laws" in the email indicates a level of financial knowledge.

A 2007 email from [Alex Mirrow] to [Doris Nelson] reflects both Mirrow's sophistication and his involvement in structuring [Doris Nelson]'s notes, including a specific suggestion regarding issuing new notes to former investors:

"At the bottom, we cannot cancel all previous notes since when people lend more money in the future we will give them another note. The language as it is would then cancel the notes we are now issuing. Only you, I and Paul know the loan numbers of the old notes so we need to specify the old loan numbers and amounts of the loans being cancelled." ...

In an email dated January 10, 2008, [Alex Mirrow] stated that he had become frustrated with [Doris Nelson]'s refusal to use commercial lending and had contacted another banker who assured him that, contrary to [Doris Nelson]'s assertions, commercial lending to a payday loan company "was no problem legally and even directed [Alexander Mirrow] to the govt. website for proof." ...

Despite this indication that [Doris Nelson] had misrepresented a significant fact about the business, Mr. Mirrow closed the email by stating that someone wanted to invest more money and that Mr. Mirrow wanted to share with Debtor his ideas of how to structure the future notes. ...

Later in 2008, Mr. Mirrow emailed to [Doris Nelson]: "Dee: Pls take what I say very seriously. You have now lost all credibility and can only gain it back by complete transparency. If you want to have the least amount of problems be sure that all the investors want the veil of secrecy removed and will want clear unambiguous answers to the following: 1. Has LLS been profitable and if so for how long? 2. What went wrong? 3. How will it be corrected and how long will it take? 4. What measures are taken to make sure that we are operating completely in harmony with all laws wherever we operate." ...

Mr. Mirrow's significant involvement with [Doris Nelson] provided him with sufficient notice of its fraudulent nature. [Alex Mirrow] was active in recruiting other investors for [Doris Nelson] and was credited with having brought in at least 52 new investors and $18 million. ... [Trustee] submitted evidence that [Alex Mirrow] received up to $53,000 per month in commissions. ... [Alexander Mirrow] also worked with [Doris Nelson] to create and edit solicitation and general letters.

***

The Court granted a $2,799,426.00 judgment against Paul Cooper and Diane Cooper.

The Court granted a $1,367,177.33 judgment against Alexander Mirrow and Save It, LLC.

The Court granted a $1,610,972.00 judgment against David Dill.

The Court granted a $410,201.55 judgment against Robert Dill, Jr. and Tracey Dill.

The Court granted a $2,337,328.66 judgment against Kevin Dill.

The Court granted a $930,184.65 judgment against Robert Dill, Sr. and Lillian Dill and LilRob, Ltd.

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BRUCE KRIEGMAN v. ALEXANDER DANIEL MIRROW was an August 2021 United States District Court, Colorado, decision. Edited excerpts:

As a sanction for filing a groundless motion to quash document subpoenas served on [Alex] Mirrow in Texas, this Court ordered that [Alex D.] Mirrow was required, jointly and severally with his Texas counsel, Craig Kyle Hemphill, to pay Plaintiff Bruce P. Kriegman, as Chapter 11 Trustee for LLS America, LLC, $9,941.25 in attorney fees. ... ...

Separately, the Trustee filed a Motion for Turn Over of Funds and Passport ... seeking the turnover of whatever remained of the approximately $300,000.00 that Mr. Mirrow had entrusted to David Perry in Sri Lanka and requiring [Alexander] Mirrow to sell his condominium in Mexico and turn over the proceeds to the Trustee. The Trustee also asks this Court to compel [Alex] Mirrow to turnover his passport. ... ...

... [Alexander D. Mirrow] argued that he does not have access to or control over the Sri Lankan funds, and is thus powerless to turn them over to the Trustee. ... [Alex] Mirrow also explained that his wife [Angela Mirrow] objects to the sale of the condominium and, because she is a joint owner, he cannot sell the home and turn over the proceeds to the Trustee. [See separate court case KRIEGMAN v. ANGELA TERESA MIRROW.]

The Trustee also suggests that [Alex D.] Mirrow's international travel necessitates seizing Mr. Mirrow's passport as he should "not be free to travel the world spending money." ... However, [Alex] Mirrow's travel appears to be religiously motivated travel funded by his mother, Fatima Mirrow, or other Jehovah's Witnesses. ... If other people want to pay for [Alexander] Mirrow's travel, food, and lodging, nothing about the outstanding judgment or the sanctions order can prevent that.

NOTE: Morris Seymour Mirrow aka Seymour Mirrow, aka Morris Mirrow, aka Morris S. Mirrow, of Seymour Mirrow Company, is the husband of Fatima (Ouida) Mirrow, and father of Alexander Daniel Mirrow, Erik Lawrence Mirrow, and Heidi Schulze (deceased). See 2021 Texas civil lawsuit, ERIK MIRROW v. BAYLOR ST. LUKE'S MEDICAL CENTER, which is a wrongful death lawsuit filed by Estate Executor Erik L. Mirrow after 85 year-old Morris Seymour Mirrow died in November 2018 at the Houston, Texas hospital.

NOTE: Outdated info from 2014 indicated that assumed Jehovah's Witness David Perry, living in Sri Lanka, was resisting returning any funds, claimining that he had invested in "good faith". Kriegman obtained an 2007 email from David Perry to his two children which said this investment opportunity "seems too good to be true".

We would like to commend some of the Jehovah's Witness "victims" of this scam who did not allow their getting caught up in this multifaceted lawsuit to hinder their "service to Jehovah". Amongst this large crowd of Witnesses was the STEPHENSON FAMILY of Carthage, Texas. It appears that the STEPHENSONS used their unfortunate circumstances to further serve Jehovah as "missionaries" by relocating to where the "need was great".

JW Elder, Huey Dan Stephenson, and JW Elder, Sammy Karl Stephenson, owners of OFS OPERATING LLC, of Carthage, Texas, were named as defendants in one of the Bankruptcy Trustees "clawback actions". See KRIEGMAN v. OFS OPERATING LLC. This scam did not stop H. Dan Stephenson and his wife Linda Stephenson from moving to and living where "the need was great", far away in Berea, Kentucky, where missionary H. Dan Stephenson is serving as an Elder at the Berea Kentucky Kingdom Hall of Jehovah's Witnesses.

Neither did this scam stop Jared Shaun Stephenson and his wife Amy Lynn Stephenson from furthering their missionary service to Jehovah by moving to and living where "the need was great", far away in Berea, Kentucky, where Jared Stephenson is also serving as an Elder at the Berea Kentucky Kingdom Hall of Jehovah's Witnesses. See KRIEGMAN v. JARED STEPHENSON and AMY STEPHENSON.

Neither did this scam stop Jason Stephenson and his wife Stephanie Stephenson from furthering their missionary service to Jehovah by moving to and living where "the need was great", far away in Sonoma, California, where Jason Stephenson is serving as an Elder at one of the Sonoma California Kingdom Halls of Jehovah's Witnesses. See KRIEGMAN v. JASON STEPHENSON and STEPHANIE STEPHENSON.

STATE OF WASHINGTON v. PAUL COOPER, DORIS NELSON, LITTLE LOAN SHOPPE, TEAM SPIRIT AMERICA, ET AL. In January 2010, the State of Washington's Department of Financial Institutions entered a Cease and Desist Order against a multitude of Canadian and American business entities allegedly owned and operated by a resident of Colbert, Washington, named Doris Elizabeth Nelson, a/k/a Dee Nelson, a/k/a Dee Foster. While mentioned in this court document, Ralph Gamble, the C.E.O. of one or more affiliates, is not charged in this action.

In this action, Washington's DOFI alleges that Doris E. Nelson told investors they could earn as much as 60 percent on money Little Loan Shoppe and its numerous affiliates used to make payday loans to consumers. More than 300 American and Canadian investors bought notes worth $29,000,000.00 in U.S. currency and another $26,000,000.00 in Canadian currency. Dee Nelson allegedly told investors that high returns were possible because short-term, high-fee payday loans allowed Little Loan Shoppe to turn their money over several times. However, investors received no payments after March 2009.

In July 2009, the company filed bankruptcy under the name LLS America, LLC. In documents filed with the U.S. Bankruptcy Court, investors claimed Doris Nelson operated the companies as a Ponzi Scheme that paid early investors with money from new investors. DOFI alleges that Doris Nelson is not currently registered to sell her securities in the state of Washington and has not previously been so registered. Also charged was Paul Cooper, who is believed to now be residing in Mexico. DOFI alleges that Paul Cooper facilitated securities transactions for Little Loan Shoppe, and that Paul Cooper is not currently registered as a broker-dealer or securities salesperson in the state of Washington, and has not previously been so registered. Although it is yet to be determined whether Paul Cooper, Doris Nelson, or some other individual(s) connected to the named entities is/are Jehovah's Witnesses, the court document states:

Most investors with LLS affiliated entities learned about the investment opportunity from friends or family members that had previously invested. A number of investors were Jehovah's Witnesses that heard about the investment from fellow Jehovah's Witnesses. Interested individuals were typically referred to Cooper or Nelson for details on the investment.

Washington's Department of Financial Institutions is also seeking a $150,000.00 fine from Doris Nelson, and a $30,000.00 fine from Paul Cooper. DOFI is also asking that Doris Nelson and Paul Cooper be jointly and severally liable for and pay its' Securities Division the costs, fees, and other expenses incurred in the conduct of the administrative investigation and hearing of this matter of not less than $60,000.00.

Several media and/or web articles report that separate civil actions have been filed by investors in Washington and Florida, and possibly in Nevada, Arizona, and Utah. Those lawsuits reportedly are alleging fraud, conspiracy, breach of contract, and violations of numerous Washington securities and consumer protection laws. Nelson and Gamble have reportedly denied any wrongdoing. One discussion board alleges that Doris Nelson's current husband, Dennis Foster, a son named Chris Foster or Christopher Foster, a daughter named Amanda Foster, and a step-son named Adam Nelson are/were high level employees of the various affiliates.

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SECURITIES AND EXCHANGE COMMISSION v. FREDERICK ALAN VOIGHT, DAYSTAR FUNDING LP, F.A. VOIGHT & ASSOCIATES LP, RHINE PARTNERS LP, TOPSIDE PARTNERS LP, INTERCORE INC., and INTERCORE RESEARCH CANADA INC. is an ongoing 2015 Texas federal civil court case which names as Defendant the patriarch of a Greater Houston, Texas area family of Jehovah's Witnesses with connections to Texas, California, New Jersey, Nebraska, and Florida. JW family members not named in this lawsuit can be found named in numerous Texas corporate filings of other Voight family connected businesses located at the same Texas addresses but not named in this court case.