Inland REIT Execs Cooked Up $185M Ponzi Scheme, Suit Says
By Dan Prochilo
Law360, New York (March 22, 2013, 8:08 PM EDT) -- A group of Inland American Real Estate Trust lnc. investors lodged a derivative suit in Illinois court Thursday that seeks billions in damages from the company's principals, alleging they ran a $184.8 million Ponzi scheme by paying shareholders with capital rather than profits or returns on investments.
The stockholders say company Chairman and CEO Daniel Goodwin, Executive Vice President Robert Baum and eight other executives sold stock in Inland Real Estate Investment Corp. for more than it was worth for years, partly because they made hefty...