On March 9, 2010, the U.S. District Court for the Central District of California granted the SEC's request for emergency relief for investors, which included a temporary injunction and a freezing of the assets of USA Retirement Management Services (USARMS). USARMS's managing partners -- Francois E. Durmaz and Robert C. Pribilski -- lured retirees through estate planning seminars and subsequently sold them investments in "Turkish Eurobonds":
The SEC alleges that USA Retirement Management Services (USARMS) and managing partners Francois E. Durmaz and Robert C. Pribilski mass-mailed promotional materials to prospective investors and invited them to estate planning seminars held at country clubs and banquet halls. They gained retirees' confidence in follow-up meetings and portrayed themselves as educated and experienced in foreign investments specifically tailored to the needs of seniors. Durmaz and Pribilski then pitched what they represented as safe, guaranteed investments in "Turkish Eurobonds" through the purchase of USARMS promissory notes that would earn annual returns between 8 and 11 percent.
The SEC alleges that USARMS raised at least $20 million from more than 120 investors, but did not actually invest the money in Turkish Eurobonds as promised.
SEC Halts Ponzi Scheme Preying on Retirees Attending Estate Planning Seminars, U.S. Securities and Exchange Commission.
See also:
- Hahn's Estate Planning Blog, Estate Planning Seminar Ponzi Scheme Shut Down
- LA Times, 'Turkish Eurobond' investment firm's assets are frozen
- Securities Law Prof Blog, SEC Obtains Emergency Relief Against Ponzi Scheme Pitching Phony "Turkish Eurobonds"
