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8/29/13 Man targeted Haitians in $30-million Ponzi scheme, prosecutors say - South Florida Sun-Sentinel.com www.sun-sentinel.com/news/palm-beach/fl-haitian-ponzi-schemer-charges-20130823,0,1571711.story 1/3 Don't Miss These Photos: Celebs at the beach Sign Up for the Weekly Ads Newsletter enter your email SUBSCRIBE TOP VIDEOS Local Business Search Raw: Nation's Largest Rocket La… AP Aug 29, 2013 Michael Douglas and Catherine Zet… An "AGT" Contestant's Scary Raw: Nation's Largest Rocket Lau… Burger King's New "French Fry Bu… Public Notices Search All content Business listings Search Miami Dolphins cheerleaders through the years Weekly Ads Sports Authority Expires this Saturday Menards Latest Flyer More Weekly Ads Comments 7 Email Share Tweet 8 1 Hom e > News > Palm Beach County News George Louis Theodule ran scam that claimed to double investors' money, indictment alleges By Brett Clarkson, Sun Sentinel 6:38 p.m. EDT, August 23, 2013 Man targeted fellow Haitians in $30- million Ponzi scheme, prosecutors say 12 To thousands of his fellow Haitians in South Florida and across the U.S., George Louis Theodule portrayed himself as a savvy financier who could double their investments. In reality, federal prosecutors say, he was a scam artist who enriched himself and his inner circle from a Ponzi scheme that took in $30 million. Now, almost five years after the U.S. Securities and Exchange Commission filed a civil lawsuit to stop Theodule's "ongoing fraud," he faces federal criminal charges. The counts include 36 charges of wire fraud, one count of securities fraud and three counts of money laundering, according to a grand jury indictment unsealed in the West Palm Beach federal courthouse on Friday. If convicted of all the charges, Theodule faces a maximum of 760 years behind bars, the court documents say. The July 2 indictment tells of a man who concocted corporate entities and so-called investment clubs as a foundation for the lies he peddled to thousands of victims between July 2007 and December 2008, prosecutors allege. According to the indictment, Theodule formed and "caused others to form" the investment clubs in South Florida and in other parts of the country to collect money from investors in the Haitian community. He would claim to be able to double their money every 30 to 90 days. "In reality, the defendant was conducting a Ponzi scheme," the indictment alleges. A Ponzi scheme refers to the fraudulent practice of soliciting investors' money, then paying returns to them with newer investors' money instead of actual earnings, as seen in the Bernie Madoff and Scott Rothstein cases. Among other falsehoods, prosecutors said, Theodule claimed to have 17 years of successful stock trading experience. The truth was he made little money from investing and didn't report any income between 2000 and 2007, the indictment said. He also never disclosed that millions of dollars put up by the investors ended up lining the pockets of him and those close to him, prosecutors allege. Jonathan E. Perlman, the Miami-based court-appointed receiver from the federal civil suit, said the money taken in by Theodule is about $60 million. He said efforts to win Ex-Delray commissioner sentenced to 7 years on fraud charges Rothstein has spoken ... so what did we learn? Fake websites were key to locksmith scam, police say Related Like 4 Search Local Businesses 86° F, Mostly clear Home News Broward Palm Sports Entertainment Life Health Business Opinion Classified Sign In or Sign Up

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8/29/13 Man targeted Haitians in $30-million Ponzi scheme, prosecutors say - South Florida Sun-Sentinel.com

www.sun-sentinel.com/news/palm-beach/fl-haitian-ponzi-schemer-charges-20130823,0,1571711.story 1/3

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Local Business Search

Raw: Nation's Largest Rocket La…AP Aug 29, 2013

Michael Douglas and

Catherine Zet…

An "AGT"

Contestant's Scary

Raw: Nation's Largest

Rocket Lau…

Burger King's New

"French Fry Bu…

Public Notices Search All content Business listings Search

Miami Dolphins

cheerleaders through

the years

Weekly Ads

Sports AuthorityExpires this Saturday

MenardsLatest Flyer

More Weekly Ads

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Hom e > News > Pa lm Bea ch Cou n t y News

George Louis Theodule ran scam that claimed to double investors' money,

indictment alleges

By Brett Clarkson, Sun Sentinel6:38 p.m. EDT, August 23, 2013

Man targeted fellow Haitians in $30-million Ponzi scheme, prosecutorssay

12

To thousands of his fellow Haitians in South Florida and across the U.S., George Louis

Theodule portrayed himself as a savvy financier who could double their investments.

In reality, federal prosecutors say, he was a scam artist who enriched himself and his inner

circle from a Ponzi scheme that took in $30 million.

Now, almost five years after the U.S. Securities and Exchange Commission filed a civil

lawsuit to stop Theodule's "ongoing fraud," he faces federal criminal charges.

The counts include 36 charges of wire fraud, one count of

securities fraud and three counts of money laundering,

according to a grand jury indictment unsealed in the West

Palm Beach federal courthouse on Friday.

If convicted of all the charges, Theodule faces a maximum

of 760 years behind bars, the court documents say.

The July 2 indictment tells of a man who concocted

corporate entities and so-called investment clubs as a

foundation for the lies he peddled to thousands of victims

between July 2007 and December 2008, prosecutors allege.

According to the indictment, Theodule formed and "caused

others to form" the investment clubs in South Florida and

in other parts of the country to collect money from

investors in the Haitian community. He would claim to be

able to double their money every 30 to 90 days.

"In reality, the defendant was conducting a Ponzi scheme,"

the indictment alleges.

A Ponzi scheme refers to the fraudulent practice of soliciting investors' money, then paying

returns to them with newer investors' money instead of actual earnings, as seen in the Bernie

Madoff and Scott Rothstein cases.

Among other falsehoods, prosecutors said, Theodule claimed to have 17 years of successful

stock trading experience. The truth was he made little money from investing and didn't report

any income between 2000 and 2007, the indictment said.

He also never disclosed that millions of dollars put up by the investors ended up lining the

pockets of him and those close to him, prosecutors allege.

Jonathan E. Perlman, the Miami-based court-appointed receiver from the federal civil suit,

said the money taken in by Theodule is about $60 million. He said efforts to win

Ex-Delray commissionersentenced to 7 years on fraudcharges

Rothstein has spoken ... sowhat did we learn?

Fake websites were key tolocksmith scam, police say

Related

Like 4

Search Local Businesses

86° F,Mostlyclear

Home News Broward Palm Sports Entertainment Life Health Business Opinion Classified

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8/29/13 Man targeted Haitians in $30-million Ponzi scheme, prosecutors say - South Florida Sun-Sentinel.com

www.sun-sentinel.com/news/palm-beach/fl-haitian-ponzi-schemer-charges-20130823,0,1571711.story 2/3

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compensation for investors are ongoing.

"Virtually 100 percent of the money, he spent," Perlman said. "He blew it out in every single

way possible: lavish car collections, motorcycles, rings, Vegas trips...in every way imaginable."

Theodule, who moved from Wellington to Georgia in 2008, was ordered by a federal judge

to pay $5.5 million in March 2010 in connection with the SEC lawsuit, according to court

records.

Staff writer Jon Burstein and researcher Barbara Hijek contributed to this report

[email protected], 561-243-6609 or Twitter @brettclarkson_

Copy right © 2013, South Florida Sun-Sentinel

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8/29/13 Man targeted Haitians in $30-million Ponzi scheme, prosecutors say - South Florida Sun-Sentinel.com

www.sun-sentinel.com/news/palm-beach/fl-haitian-ponzi-schemer-charges-20130823,0,1571711.story 3/3

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Comments (7) Add / View comments | Discussion FAQ

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