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Investors Lose Millions in Alleged Carr Miller Ponzi Scheme

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Newark, NJFor people who lost money in the alleged Carr Miller Capital Ponzi Scheme, the issue is not only that they lost money but that they lost a lot of money. Investigators into the Ponzi scheme—a form of securities fraud—say that the money was used in investments the investors did not authorize and used to make personal purchases on behalf of the principals in Carr Miller Capital, which might be the most heartbreaking part of the Ponzi scheme. After all, investors know they might lose their money in an investment; they just do not expect that money will purchase luxury items for the financial advisors who sold them the investment.

The Carr Miller Ponzi scheme is allegedly no different than countless other Ponzi schemes. Investigators allege that money from later investors was used to pay out earlier investors. In the case of Carr Miller, there were reportedly some legitimate investments, but it was mainly new investors' money that paid out the previous investors. Eventually, money from new investors reportedly dried up and there was no longer enough to pay out investors.

Court documents allege investors lost up to $40 million in Carr Miller. Of that, approximately $13 million went to personal purchases for Everett Charles Ford Miller, Brian P. Carr and Ryan J. Carr—the defendants in a lawsuit. Those purchases reportedly include a New Jersey Devils sky box, luxury vacations and vehicles. Furthermore, $16 million reportedly went to real estate ventures and film production companies that investors did not authorize.

Investors may be able to regain some of the lost money, either directly through Carr Miller Capital or through stockbrokers and investment advisors who may have referred customers to Carr Miller without their firms' approval. This is similar to the Bernard Madoff situation, where lawsuits were also filed against feeder funds that channeled money into Madoff's Ponzi scheme.

Investors who invested directly with Carr Miller—that is, those who were not referred by a stockbroker or financial advisor—will have to file a lawsuit or a FINRA (Financial Industry Regulatory Authority) arbitration against Carr Miller. Those who were referred to Carr Miller by a stockbroker or financial advisor without the approval of their firm may be able to recover losses through the individual advisor, through either a lawsuit or a FINRA arbitration.

Investors in Carr Miller Capital were reportedly promised returns of between 10 and 15 percent for nine-month terms. Approximately $8 million was allegedly paid out to investors, but was obtained not through legitimate investments but from money that came in from new investors. Following an investigation, New Jersey securities regulators and the New Jersey attorney general filed a lawsuit against Carr Miller Capital LLC and Carr Miller's principals.

READ ABOUT CARR MILLER CAPITAL PONZI SCHEME LAWSUITS

Carr Miller Capital Ponzi Scheme Legal Help

If you or a loved one have suffered losses in this case, please click the link below and your complaint will be sent to a securities fraud lawyer who may evaluate your Carr Miller Capital Ponzi Scheme claim at no cost or obligation.

READER COMMENTS

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My problem, besides the obvious, with this entire mess is that the criminals never seem to get the punishment that fits the crimes. They should have to forfeit everything they own along with repossessing any gifts they purchased for others, and be forced to repay every single dime that cannot be found by such levies, and also serve significant prison sentences, those types of sentences in a real prison, with the real bad guys and not have them serve the white collar, tennis court version of prison. The reason they do these crimes is because they can get away with it and the punishment is laughable! The current punishments are as much a crime as the actual crimes they commit!

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