Ponzi Scheme Convictions Bring Receivers Seeking Restitution

As you may know, the Three Hebrew Boys operated Capital Consortium Group, LLC. The master minds of this scheme were Joseph B. Brunson, Timothy McQueen and Tony Pough, all from the Columbia, South Carolina area.

According to the U.S. Attorney District of South Carolina’s Office:

Between 2004 and 2008, they 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.

In November 2009, the Three Hebrew Boys, also known as 3HB, were convicted by a federal jury on 174 counts. 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. According to WISTV, a sentencing hearing has been scheduled for December 14, 2010. The men face a potential maximum sentence of 940 years imprisonment and a fine of $14.5 million dollars.

Investors of The Three Hebrew Boys or Capital Consortium Group (CCG)

Three Hebrews Boys (or CCG) investors, including innocent investors, who made money as part of the scheme have already been or may be contacted via phone or with a letter from the Receiver Beattie B. Ashmore or L. Walter Tollison, II, attorney for the receiver.

The Receiver is tasked with marshalling any assets obtained with money made from the scheme and returning such profits to Ponzi scheme victims. In light of the recent conviction, any innocent investors  who invested money with the Three Hebrew Boys may be exposed to criminal and/or civil liability.

Three Hebrew Boys or CCG investors should understand the seriousness of what is at stake and should contact a federal criminal defense attorney before responding to the Receiver. If you or someone you know has received a letter regarding A Matter Under Investigation By Grand Jury #1, #2007R00845 or a letter from the Receiver Beattie B. Ashmore, or his attorney L. Walter Tollison, III, you should contact a lawyer before talking to the Receiver. Additionally, you should refrain from transferring any assets before contacting an attorney.

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.

It is also 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. Contact us today to arrange a free case review. Our lawyers are licensed in South Carolina, New York, and Georgia.

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