CEO of the Duncan Group In St Louis Pleads Guilty in Multi-Million Dollar Ponzi Scheme

The United States Attorney’s Office announced today that Aaron Duncan, the former CEO and owner of The Duncan Group, has pleaded guilty to fraud charges involving a $3.9 million investment scheme.

According to court documents, Duncan represented that The Duncan Group was involved in real estate investments, including buying, rehabilitating, and selling residential real estate. Duncan solicited investors in Missouri and around the United States to participate in his real estate projects through The Duncan Group by making false representations regarding the security of investments and the rates of returns promised. Bank records revealed that Duncan operated The Duncan Group investment program as a Ponzi scheme. Investors who were repaid on their principal investments were paid from funds obtained from other investors, rather than from returns on investments in real estate projects as promised and represented. At no time did Duncan advise investors that their returns, if paid at all, would be paid from other investors’ principal. Typically, Duncan falsely told investors that their principal investments were secured by a specific property. For example, some investors were told that an investor’s name would be placed on a particular deed or that investors were “securitized” by first mortgages on properties.

Bank records show that beginning no later than December 2005, Duncan was experiencing personal financial problems and was often late on his home mortgage payments.

The scheme operated from roughly January 2006 until Duncan advised investors of his intention to declare bankruptcy in October 2008. During the scheme, Duncan received investment principal from more than 50 investors who ultimately lost a total of approximately $3.9 million. Records recovered during the investigation revealed that Duncan only bought approximately 10 properties and that these ten properties lost money in total. Investor money was not used as promised and represented, instead, investor money was routinely used to pay other investors, pay routine expenses of the business, and to pay Duncan’s personal expenses.

Duncan, 33, Defiance, Missouri, pleaded guilty to one felony count of mail fraud and one felony count of money laundering before United States District Judge Carol E. Jackson. Sentencing has been set for July 27, 2010.

“Promoters of Ponzi schemes prey upon trusting investors and then steal their hard earned money. Investors should be wary that programs promising unbelievable returns on investment should be looked at carefully,” said Toni Weirauch, Special Agent in Charge of IRS Criminal Investigation, St. Louis Field Office.

“Mr. Duncan conned potential investors by promising a high rate of return on real estate and a fast turnaround,” said Michael Kaste, Assistant Special Agent in Charge of the FBI St. Louis Division. “Anytime before investing, people should do their homework and check with agencies like the Secretary of State, the Securities and Exchange Commission, the Better Business Bureau and other court records. But even then, con men will build a 12-foot ladder to climb an 11-foot wall.”

Mail fraud carries a maximum penalty of 20 years in prison and/or fines up to $250,000; money laundering carries a maximum penalty of 10 years in prison and/or fines up to $250,000.

This case was investigated by Internal Revenue Service Criminal Investigation, the Postal Inspection Service, the Federal Bureau of Investigation, and the Securities Division of Missouri Secretary of State Robin Carnahan’s Office. Assistant United States Attorney John Bodenhausen is handling the case for the U.S. Attorney’s Office.

Print Friendly, PDF & Email

34 comments to CEO of the Duncan Group In St Louis Pleads Guilty in Multi-Million Dollar Ponzi Scheme

  • Wow, that’s what I was looking for, what a information! present here at this web site, thanks admin of
    this website.

  • Hey! Someone in my Facebook group shared this site with us
    so I came to take a look. I’m definitely loving the information. I’m book-marking and will be tweeting this to my followers!

    Outstanding blog and brilliant style and design.

  • Yes! Finally someone writes about coconut oil there.

  • Howdy! Do you know if they make any plugins to help with SEO?
    I’m trying to get my blog to rank for some targeted
    keywords but I’m not seeing very good results.
    If you know of any please share. Many thanks!

  • Everything is very open with a very clear clarification of the issues.

    It was really informative. Your site is useful. Thanks
    for sharing!

  • Very descriptive post, I loved that a lot. Will there be a part 2?

  • Greetings! This is my first visit to your blog! We are a group of volunteers and starting a new initiative in a community in the
    same niche. Your blog provided us valuable information to work
    on. You have done a wonderful job!

  • … [Trackback]

    […] Find More on to that Topic: stlouisrealestatenews.com/legislative-regulatory/ceo-of-the-duncan-group-in-st-louis-pleads-guilty-in-multi-million-dollar-ponzi-scheme/ […]

  • Thanks very nice blog!

  • Hi there! This is kind of off topic but I need some advice from an established blog.
    Is it very difficult to set up your own blog? I’m not very techincal but I can figure
    things out pretty fast. I’m thinking about making my own but I’m not sure where to
    begin. Do you have any points or suggestions? Thanks

  • … [Trackback]

    […] Read More on to that Topic: stlouisrealestatenews.com/legislative-regulatory/ceo-of-the-duncan-group-in-st-louis-pleads-guilty-in-multi-million-dollar-ponzi-scheme/ […]

  • Hey There. I found your blog using msn. This is a really well written article.
    I’ll be sure to bookmark it and come back to read more of your
    useful info. Thanks for the post. I will certainly comeback.

  • Hello, I think your blog might be having browser compatibility issues.
    When I look at your website in Opera, it looks fine but when opening in Internet Explorer, it has some
    overlapping. I just wanted to give you a quick heads up!
    Other then that, superb blog!

  • … [Trackback]

    […] There you can find 50580 more Info on that Topic: stlouisrealestatenews.com/legislative-regulatory/ceo-of-the-duncan-group-in-st-louis-pleads-guilty-in-multi-million-dollar-ponzi-scheme/ […]

  • Hi! Would you mind if I share your blog with my facebook group?
    There’s a lot of people that I think would really appreciate your content.
    Please let me know. Many thanks

  • Link exchange is nothing else except it is simply placing the other person’s blog link on your page at appropriate place and other person will also do same in favor of you.

  • Link exchange is nothing else except it is just
    placing the other person’s weblog link on your page at appropriate place and other person will also do similar for
    you.

  • of course like your web-site but you have to take a look at the spelling
    on several of your posts. Many of them are rife
    with spelling issues and I in finding it very troublesome to tell the
    truth then again I will surely come again again.

  • Awesome website you have here but I was curious if you knew of any message boards that cover the
    same topics discussed here? I’d really love to be a
    part of group where I can get advice from other knowledgeable individuals that share
    the same interest. If you have any suggestions, please let me know.
    Thank you!

  • Good web site you have here.. It’s hard to find quality writing like yours these days.

    I seriously appreciate individuals like you!
    Take care!!

  • Wow, fantastic weblog structure! How long have you ever been running a blog
    for? you make blogging glance easy. The entire look of your site is great, let alone
    the content!

  • Great items from you, man. I have take into account your stuff prior to and you are simply
    extremely fantastic. I actually like what you’ve acquired right here, certainly like what you’re saying
    and the way by which you say it. You are making it entertaining and
    you continue to care for to stay it wise. I
    can’t wait to read far more from you. That is really a tremendous site.

  • I really like what you guys are usually up too.
    This sort of clever work and reporting! Keep up the fantastic works guys I’ve added
    you guys to blogroll.

  • Aw, this was a very nice post. Finding the time and actual
    effort to make a top notch article… but what can I say… I
    hesitate a whole lot and don’t seem to get anything done.

  • … [Trackback]

    […] Find More here on that Topic: stlouisrealestatenews.com/legislative-regulatory/ceo-of-the-duncan-group-in-st-louis-pleads-guilty-in-multi-million-dollar-ponzi-scheme/ […]

  • Somebody necessarily assist to make critically posts I might state.
    That is the first time I frequented your website page and up to now?
    I surprised with the analysis you made to make this actual publish incredible.

    Wonderful job!

  • … [Trackback]

    […] Information to that Topic: stlouisrealestatenews.com/legislative-regulatory/ceo-of-the-duncan-group-in-st-louis-pleads-guilty-in-multi-million-dollar-ponzi-scheme/ […]

  • … [Trackback]

    […] Find More Info here to that Topic: stlouisrealestatenews.com/legislative-regulatory/ceo-of-the-duncan-group-in-st-louis-pleads-guilty-in-multi-million-dollar-ponzi-scheme/ […]

  • … [Trackback]

    […] Find More Information here to that Topic: stlouisrealestatenews.com/legislative-regulatory/ceo-of-the-duncan-group-in-st-louis-pleads-guilty-in-multi-million-dollar-ponzi-scheme/ […]

  • … [Trackback]

    […] Read More to that Topic: stlouisrealestatenews.com/legislative-regulatory/ceo-of-the-duncan-group-in-st-louis-pleads-guilty-in-multi-million-dollar-ponzi-scheme/ […]

  • … [Trackback]

    […] Read More to that Topic: stlouisrealestatenews.com/legislative-regulatory/ceo-of-the-duncan-group-in-st-louis-pleads-guilty-in-multi-million-dollar-ponzi-scheme/ […]

  • … [Trackback]

    […] Here you will find 8666 additional Info on that Topic: stlouisrealestatenews.com/legislative-regulatory/ceo-of-the-duncan-group-in-st-louis-pleads-guilty-in-multi-million-dollar-ponzi-scheme/ […]

  • … [Trackback]

    […] Read More here on that Topic: stlouisrealestatenews.com/legislative-regulatory/ceo-of-the-duncan-group-in-st-louis-pleads-guilty-in-multi-million-dollar-ponzi-scheme/ […]

Leave a Reply

You can use these HTML tags

<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>