January 21, 2013 by jllafitte
The Bernard Madoff Ponzi scheme started mainstream awareness of the crime referred to as Affinity Fraud. The Sec has warned about these crimes, in which a member of an ethic or religious group preys on his own.
My story is a scheme by two fraternity brothers, in which I lost $200,000 and was left to pay the bills after they did a Squeeze-out to remove me followed by a Fraudulent Transfer to avoid creditors. Transferring the company back to themselves after they defaulted on a loan to the FF&E lender, General Electric Finance Corp, for $1.1 million.
I will call my brothers, T-Boy and Boudreaux, and our company “Scam Your Brother” planed to open six Thibodaux’s restaurants.
The year was 1998, T-boy I knew for twenty-five years before he recruited me to invest in Scam Your Brother. Boudreaux I had known for fifteen years. Boudreaux called it the Boudreaux and T-Boy increase their net worth by $13,000,000 each Business Plan.
Under the plan neither Boudreaux nor T-Boy would put any money into the company or if they did, they would get it out right away. I was soliciated to invest $200,000 with expectatiobs of an 100% annual return starting in year five. “Investor Expectations must be met” the operating agreement read.