- 10 -
Tamarisk invested $250,000 in a loan program called “Cash for
Titles” and $300,000 in an investment called Lanstar. Minutes of
OMK Company Trust, dated August 18, 1998, indicate that the Loan
Account (previously Cash for Titles) in which $250,000 had been
invested was “now valued at the August 15 date at $454.6K”. A
Tamarisk statement, dated November 19, 1998, sent to the OMK
trusts by Zephyr, reported that the balance in the loan program
was $333,460 on December 31, 1997, and $472,785 on September 30,
1998. The $139,325 increase was attributable to monthly
transactions recorded as interest.
The OMK trusts also invested with Little in Fountainhead.
Fountainhead quarterly statements for March 31, June 30,
September 30, and December 31, 1998, reported the following
transactions:
Mar. 31 June 30 Sept. 30 Dec. 31
Last quarter’s balance -0- -0- $100,000 $100,000
New investment $100,000 $100,000 -0- -0-
Total interest this quarter -0- 4,160 12,661 12,661
Less return of principal -0- -0- 7,714 7,714
Less return of interest -0- -0- 4,001 4,001
Less management fees -0- 304 946 946
Total investment value 100,000 103,856 100,000 100,000
The “investments” promoted by Little, Fritts, and Rowe were
in reality scams, and petitioners never recovered their money.
The “cash for title” loan program investment was in reality a
large-scale, international Ponzi scheme devised by Michael Gause
(Gause). Gause conducted the scheme in the Cayman Islands
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