Investors Receive Money from 3 Hebrew Boys Scam

Scam Victims Receiving Restitution in 3 Hebrew Boys Aftermath

3 Hebrew BoysOn Wednesday, October 8th, US Attorney Bill Nettles reported that former investors in the 3 Hebrew Boys scam will begin to receive their part of $19 million, which hopefully is the third of many rounds of restitutions for the scam victims. The first round went out in May 2012, and the second went out in June 2013.

Around 3,800 checks were mailed to the former investors, Nettles said in a news release, which gives the victims about 46 cents to every dollar they lost.

The three men behind the 3 Hebrew Boys scam were convicted in 2009 for running the $80 million scam, and are still serving decades-long sentences, and are reportedly still unrepentant for their actions. A federal judge recently appointed Beattie Ashmore to round up the personal assets of Joseph Brunson, Tony Pough, and Timothy McQueen, the three men behind the 3 Hebrew Boys. Brunson and McQueen are currently serving 27 years in federal prison, while Pough will serve 30 years in prison.

Between 2004 and 2008, the 3 Hebrew Boys, who named themselves after the Biblical parable about the three brothers who survived a fire pit through their faith in God, collected more than $82 million dollars from approximately 7,000 investors by offering debt elimination programs that promised to pay off investors’ mortgages and car loans with high yields. In fact, the trio invested little of the money received, and used most of the investors’ money to buy luxury items for themselves, including a jet, expensive cars, real estate, and luxury suites at professional football stadiums. The 3 Hebrew Boys, it turned out, ran a classic Ponzi scheme.

In November 2009, the Three Hebrew Boys, also known as 3HB, were convicted by a federal jury on 174 federal charges. The counts included money laundering, mail fraud and conspiracy. The verdict ultimately resulted in an order of forfeiture in the amount of $82 million dollars.

During the investigation of this scheme, it has become apparent that a number of investors did not pay income tax on the residual payments from programs they participated in with CCG. Thus, in addition to facing potential criminal and/or civil liability for involvement in the Ponzi scheme, investors of the Three Hebrew Boys (or CCG) may also be subject to criminal or civil tax penalties for violating federal and state tax laws.

The Strom Law Firm Helps Defend Federal Charges

It is important that you speak with a competent federal criminal defense attorney before discussing anything with a Federal agent, as you may be prosecuted for any false statements made to a Federal agent. Remember, Martha Stewart did not go to prison for insider trading; she was convicted of making a false statement to a Federal agent. This is known as a 1001 violation.

At Strom Law Firm, LLC, our federal criminal defense attorneys provide comprehensive legal services designed to protect your rights and your interests. If you face federal charges for embezzlement, fraud, or conspiracy, contact us today to arrange a free case review. Our lawyers are licensed in South Carolina, New York, and Georgia. 803.252.4800

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