The Biggest Ponzi Scheme

Biggest Ponzi Scheme

Beginning with Charles Ponzi, America has had its fair share of Ponzi schemes. Most of these have been localized and have never affected more than a small percentage of the population. But what if America itself was built on a Ponzi scheme and what if that Ponzi scheme was about to collapse? Our 27 year old investor research firm has just put the finishing touches on a video presentation that exposes the truth about America’s biggest Ponzi scheme and why we believe its about to crash. It’s a serious threat to our economy and markets, possibly the bigger than any economic threat we’ve ever seen. What all investors should know about right now. We urge you to watch our video ‘Biggest Ponzi Scheme In US History To Crash’ at

Movie producer convicted in Ponzi scheme

SANTA ANA – A Laguna Niguel man was convicted of orchestrating a multimillion-dollar Ponzi scheme to finance B-movies that starred celebrities like mixed martial arts fighter Quinton “Rampage” Jackson and rapper Flavor Fav.

Mahmoud Karkehabadi, 56, was found guilty by an Orange County jury of 51 felony counts of securities fraud and grand theft, plus sentencing enhancements for aggravated white-collar crime and excessive taking.

He now faces a 30-year term in prison at his March 25 sentencing by Superior Court Judge Richard Toohey, Deputy Attorney General Patricia Fusco said.

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But the same jury of six men and six women found co-defendant Timothy Cho, 56, not guilty of 30 felony counts. Cho was president of Newport Coast Entertainment, which raised money to finance Karkehabadi’s movies.

He walked out Toohey’s courtroom smiling. “I’m so relieved,” Cho said. “This has been hanging over my head for two and a half years. It was very scary.”

Karkehabadi, also known as Mike Karkeh, was the owner of Alliance Group Entertainment in Burbank, which made several B-list action and horror films since 2005, including “Confessions of a Pit Fighter” and “Hotel California.” The movies were not financially successful but are still on the market.

Prosecutors in the California Attorney General’s Office contended that Karkehabadi solicited hundreds of people to invest in the movies with misleading promises of quick and high returns on millions of dollars worth of loans, and then paid early investors with funds from newer investors.

Karkehabadi also failed to disclose to potential investors that he had been ordered by the state to pay a $5 million civil judgment for defrauding more than 500,000 people in 2003 in a phony credit card case, a 2010 news release from the Attorney General’s Office said.

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The Population Ponzi Scheme

The crux of the argument for increased immigration by Mr. Bush and Clint Bolick (his co-author of a forthcoming book on “Immigration Wars”) is that the economy and social-welfare system will collapse without increased immigration. They write:

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The birthrate in this country has fallen below the level necessary to sustain the population at the very time that millions of Americans are leaving the workforce and expecting retirement benefits. The nation needs energetic young workers to spur the economy and support an ever-increasing social-welfare burden.”

When you read about a falling birthrate and a dearth of workers, the words PONZI SCHEME should start flashing in your mind. The average annual number of births between 2000 and 2009 was more than four million. The population grew by about 2.8 million a year over the same period. The U.S. is currently issuing more than a million new green cards a year and admitting about as many long-term temporary foreign workers. But that is not enough to satisfy employers.

It’s true that as baby boomers retire the country is experiencing a transition in which the ratio of retirees to workers has increased in proportion to the number of those working. But pumping more foreign workers into the economy will only perpetuate the problem as those foreign workers age and retire. Like a Ponzi scheme, this can’t work indefinitely because sustaining a population requires resource inputs – food, water, non-renewable resources – and, therefore, has a limit.

When a Ponzi scheme collapses, those who have invested in it suffer. If the endless population expansion advocates have their way, the collapse will come when non-renewable resources – think petroleum and other energy resources are depleted and aquifers are pumped dry – and, at that point the loss will not be an economic investment, but something far worse.

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