The Latest Ponzi Scheme
Monday, January 19th, 2009
Many UK investors are in fear of huge losses totalling up to $20 million after being hit by a Ponzi scheme by American stock trader Dennis Bolze. The fraudulent investment operation under which Bolze traded was called Centurion Asset Management, and over one hundred European investors are believed to have invested large amounts of money into the company. A ponzi scheme typically offers high short-term returns to investors, and can appear very attractive. Investors are typically paid from money that new investors put in, so the money flow needs to be constant.
Dennis Bolze is currently being pursued by American authorities after he failed to appear at a bankruptcy hearing. His wife claims that she does not know where he is, but that he stopped trading months previously. European investors are believed to have put in $20 million into the management firm, and authorities are trying to reclaim Bolze’s assets if any.