Fraud Victims Win 2.75 Million Ponzi Scheme Verdict

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Although there has been an incredible amount of attention paid to the Bernie Madoff type financial scams that were exposed when the economy collapsed, what has been under-reported is the millions Americans lost in smaller ponzi type schemes. One diverse group of victims received a 2.75 million verdict in federal court this week.

Bryan Becker of Becker Attorneys announced today that a jury has awarded $2,748,000 in damages to eight victims of an investment ponzi scam operated by Nashville area defendants, Gregory Schneider and Brian Cook.

The Plaintiffs sued Schneider and Cook and their alter ego corporation, Shipping Solutions, Inc., after the defendants failed to account for $916,000 in missing plaintiff investment funds. The jury trial was held before Judge William J. Haynes in the United States District Court for the Middle District of Tennessee (Nashville). Case No. 3:08-cv-1013

Following a three day trial, the jury found that the defendants committed fraud against the plaintiffs. The jury also found the defendants violated the Tennessee Consumer Protection Act in operating a pyramid scheme. The jury found the defendants violations knowing and willful, prompting the Court to impose treble damages. In addition, the Court issued an order permanently enjoining the defendants from ever soliciting a business or investment opportunity in the future.

“The plaintiffs expressed immense satisfaction and a deep sense of gratitude that the jury recognized the depth of the defendant’s fraud and deceit,” said Bryan Becker of Becker Attorneys.    

The plaintiff investors successfully argued that they were fraudulently led to believe they were investing in an online video-game business based in Lebanon, Tennessee. Promising sky-high, guaranteed returns, the defendants instead were operating a ponzi scheme, wherein money provided by new investors was used to pay seemingly high returns to early stage investors, but the scheme collapsed when required redemptions exceeded new investments. In addition to using the monies to support their extravagant lifestyles, the defendants transferred the plaintiff’s money into a shell corporation used to trade in the foreign exchange currency market (FOREX).

In addition to Mr. Becker, the plaintiffs were also represented by John W. Roberts of Nashville, Tennessee.

A business and personal injury trial attorney, Bryan Becker is committed to protecting and vindicating the rights of clients injured through negligence, deceit and abuse of power. Becker Attorneys represents clients in courtrooms throughout California and across the nation. For more information, go to http:/

For more information, contact Bryan Becker at 877-201-8728.


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