Ponzi Schemes: They Just Keep Coming

Another day another Ponzi scheme. Now it involves a nursing home operator.

Sunwest Management has been charged by the SEC with operating a Ponzi scheme that potentially defrauded investors out of $300 million. The company was involved in the acquisition and operation of over 200 retirement homes. It told investors that they were investing in specific properties and that Sunwest had never missed a payment (sound familiar?). In fact they were diverting funds from one retirement community to another, leveraging investments and using new funds to pay returns to older investors.

This is going to be an oft repeated story. Who truly knows how deeply the rot goes and how many will be discovered. Maybe the biggest question here is just how overvalued or put another way how far down will all of these scams push the price of real estate.

More: here

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