SEC: Ponzi Scheme Defrauded Jehovah's Witnesses

Law360, New York (July 18, 2006, 12:00 AM EDT) -- The U.S. Securities and Exchange Commission has filed civil charges against two men and the company they headed, saying the investment group was a Ponzi scheme that preyed on fellow Jehovah’s Witnesses and the elderly.

The complaint, filed Monday in the U.S. District Court for the Central District of California, alleges that Renaissance Asset Fund Inc., Ronald J. Nadel and Joseph M. Malone raised more than $16 million from more than 190 investors.

“As with all Ponzi schemes, once the ever-increasing flow of new investors stopped,...
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