{"id":3072,"date":"2014-12-08T00:00:00","date_gmt":"2014-12-08T05:00:00","guid":{"rendered":"http:\/\/silverlaw.lawblogger.net\/blog\/two-florida-businessmen-plead-guilty-to-a-20-million-dollar-ponzi-scheme\/"},"modified":"2014-12-08T00:00:00","modified_gmt":"2014-12-08T05:00:00","slug":"two-florida-businessmen-plead-guilty-to-a-20-million-dollar-ponzi-scheme","status":"publish","type":"post","link":"https:\/\/www.silverlaw.com\/blog\/two-florida-businessmen-plead-guilty-to-a-20-million-dollar-ponzi-scheme\/","title":{"rendered":"Two Florida Businessmen Plead Guilty to a $20 Million Dollar Ponzi Scheme"},"content":{"rendered":"<\/p>\n

Donald Ray Babb and Ralph Ruth each face a maximum 20 years in federal prison after pleading guilty to operating a $20 million dollar Ponzi scheme<\/a>.<\/p>\n

The scheme lasted from June 2006 through the end of 2013 primarily targeting older investors<\/a> including several government workers costing many investors their life savings after suffering a total loss of their investments.\u00a0 The victims\u2019 money was primarily used to pay earlier investors and to purchase real estate and luxury items for the Ponzi schemers.<\/p>\n

According to news reports,\u00a0between June 2006 and December 2013, Babb and Ruth orchestrated a scheme in Brevard County that defrauded approximately 180 investors out of almost 20 million dollars. Doing business as Southeast Mutual Insurance and Investment LLC, Capstar Industries LLC, and First Merchant Capital LLC, Babb and Ruth falsely represented their businesses as licensed financial institutions whose deposits were insured by the Federal Deposit Insurance Corp.\u00a0 Many investors thought they were buying bank products such as Certificates of Deposits and savings accounts.\u00a0 Ponzi schemes targeting elderly investors are on the rise.\u00a0 In the instant case, some investors were in their 80\u2019s and were solely looking for preservation of capital.\u00a0 Many elderly investors are being defrauded in Ponzi schemes which are promoted by offering investment products which offer a high rate of return without taking any stock market risk.<\/p>\n

Continue reading \u203a<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"

Donald Ray Babb and Ralph Ruth each face a maximum 20 years in federal prison after pleading guilty to operating a $20 million dollar Ponzi scheme. The scheme lasted from June 2006 through the end of 2013 primarily targeting older investors including several government workers costing many investors their life savings after suffering a total […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[578,582,593],"tags":[],"class_list":["post-3072","post","type-post","status-publish","format-standard","hentry","category-all-releases","category-elder-fraud","category-ponzi-schemes"],"yoast_head":"\nTwo Florida Businessmen Plead Guilty to a $20 Million Dollar Ponzi Scheme — Securities Arbitration Lawyers Blog — December 8, 2014<\/title>\n<meta name=\"description\" content=\"Donald Ray Babb and Ralph Ruth each face a maximum 20 years in federal prison after pleading guilty to operating a $20 million dollar Ponzi scheme. 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