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|Leader of San Fernando Valley-Based Ponzi Pleads Guilty to Federal Charges|
|Written by San Fernando Valley Sun|
|Thursday, 04 October 2012 04:11|
LOS ANGELES (CNS) – A Los Angeles man, who fled the country after the collapse of a $7.6 million Ponzi scheme that targeted his fellow Rotarians, has pleaded guilty to federal mail fraud charges and faces up to 20 years in prison.
On Oct. 1, Daniel Nelson Tynon, 55, pled guilty before U.S. District Judge Stephen V. Wilson, who is scheduled to sentence him on Dec. 10.
Tynon, who operated a Van Nuys-based investment company called Dant Corp., falsely promised investors annual returns of 18 percent, with the income coming from investments in county property tax liens, according to court documents.
Postal inspectors who investigated the case found no evidence that Tynon invested in tax liens, according to the U.S. Attorney's Office.
More than 40 victims invested a total of almost $8 million with Tynon. Many of them were members of the Rotary International service organization, where Tynon was a former district governor, according to authorities.
"This Ponzi scheme is a classic example of affinity fraud, in which the fraudster preys on victims who are members of an identifiable group, exploiting the trust and friendship of the group's members," said B. Bernard Ferguson, Inspector in Charge for the Los Angeles division of the United States Postal Inspection Service.
"The victims suffered not only a financial loss, but also – perhaps even greater – the violation of the trust they had placed in a respected leader of their organization," he said.
After the Ponzi scheme collapsed earlier this year, several investors' received information that led them to believe that Tynon had died, but postal inspectors investigating the matter determined that Tynon was actually alive and living in Thailand.
After federal prosecutors filed charges against Tynon, his U.S. passport was revoked based on the outstanding mail fraud arrest warrant and he was apprehended by the Royal Thai Police, Immigration Bureau, and was escorted back to the United States.
During the course of the scheme, which started about a dozen years ago, Tynon raised just over $7.6 million, but some victims were partially repaid and the estimated losses in the case are just shy of $2 million, according to the U.S. Attorney's Office.
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|Last Updated on Thursday, 04 October 2012 04:12|