A lesson for the kids: A suburban developer threesome has been charged with running a "Ponzi-like" scheme, reports Crain's. Marcin Malarz, Jacek Sienkiewicz, and Arthur Lin have been named in the SEC suit for defrauding investors of a portion of the $14.4M raised for suburban condo conversions. At least two of these conversions have gone into foreclosure. The allegation is that the developers applied some of the investment money toward personal expenses like car payments, home repairs, and vacations. Apparently, the developers stopped making payments in early '09. The suit is demanding repayment of the entire $14.4M sum. But there's a slight hitch: two of the three defendants are chillin' somewhere in Eastern Europe. [Crain's]
Filed under: