Investor accused of $2.5 million + Ponzi scheme
A Defiance man has been indicted on federal fraud charges for running a pyramid scheme that allegedly duped investors out of more than $2.5 million since 2006.
Aaron W. Duncan ran “The Duncan Group” with offices in Chesterfield and St. Charles, and told investors that he was making big returns by buying and rehabbing foreclosed properties and buying rental properties and commercial real estate. He bought investors’ confidence by claiming that TDG had “deep financial resources,” the indictment says.
According to the indictment, unsealed Friday:
Duncan convinced some investors to pour their retirement savings into TDG and handed them fake promissory notes in return.
He also said that he would put their name on the mortgage of the investment properties.
But Duncan had already run into his own personal financial trouble in December of 2005, and was struggling to pay his mortgage.
He never told investors that TDG had not bought enough property to justify the promised returns, or that he was using new investors’ money to pay sham profits to older investors.
He also did not tell them that he was using their money to pay himself and to pay for personal expenses.
As the pyramid wobbled, Duncan scammed existing investors into extending their investments rather than cashing out.
In October 2008, he told investors that investment losses were due to troubles in the economy and that he was declaring personal bankruptcy.
The indictment says one Missouri couple’s initial investment of $312,200 was deposited in a TDG account with a balance of only $10,200. In less than three weeks, $139,000 of the couple’s money was parceled out as profits to four other investors. The couple eventually lost almost all of their total investment of $582,000.
Duncan, 32, was indicted on four counts of wire fraud, seven counts of mail fraud, and nine counts of money laundering.
His attorney could not be immediately reached for comment.
“Investors must be wary about any claims of high rates of return,” said J.R. Ball, head of the St. Louis office of the U.S. Postal Inspection Service in a prepared statement.
“We will investigate individuals who empty the pockets of unsuspecting investors,” read a statement by John Gillies, head of the St. Louis office of the FBI. “High dollar frauds and other white collar crimes continue to be one of our top priorities. The FBI and its law enforcement partners are committed to protecting the interest of American investors and prosecuting the scam artists who prey on them.”
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The old rule applies: If it sounds too good to be true, it probably is a scam. Bernie Madoff’s scam worked so well in large part because he didn’t promise very much; just a little more than normal.
These fricking guys are douche-to the bags….my ex wifes cousin did the same thing..except for over 40 million. Young punk- always when the family got together once a year for 4th of july he would drive up in these fancy new cars and flash around money and blah blah blah about soemthing new that he bought and how much it cost and how well his company was doing. All the while he was snickering down his nose at me because i only made a lousy 75 grand a year…yeah..douchebag..i went to work and earned my money honestly- i didnt steal it from others much less my own family so i can drive around looking flashy and important.
Line these f@gs up…..i want to get a running start to punch em.
Ha ha.u are going to the whole to be molested- i am now benefiting because you douchebags tanked the economy and now i am buying my 4th house from foreclosure. So i will be retired somehwere in my 40’s while ur still hoping you dont drop the soap.
Strong post JTnCALI
JTnCali, it sounds like your ex-wife’s cousin’s arrogance rubbed off on you. It’s okay bud. I am sure someone thinks you are important.
Folks shouldn’t be suprised. This fella and Madoff were just following the playbook established by the Social Security Ponzi Scheme implemented by our federal government.
A little research showed an interesting article on Mr. Duncan. For those who are interested Inc. magazine should be advised on who they give kudos to — can anyone confirm that this is the same Aaron Duncan who has been indicted? I like the one comment about church and family:)
http://www.inc.com/entrepreneur/2006/profile/index.php?duncan173
Forgive me as I am a new poster…My favorite comment is this one:
Entrepreneur of the Year? I’m voting for Entrepreneur of the Century. Mr. Duncan is definately a symbol of success!
Steven Johnson - St. Peters, MO
Please let me know if this is the same Duncan!!!!
It looks like it’s the same guy. Some of the company names match. Good catch, EnchantedAngel.
Thank you, Mr. Patrick- is there any chance you could incorporate this article in your future reports so the public will be aware? Are any of the people who are praising him actual victims? Okay forgive me I am new, there is one comment from Fooled customer who addresses Aaron being a scam artist back in 2005, now my favorite comment is this one who addressing the “hater”–
Aaron Duncan, Entreprenuer of the YEAR? Uh oh! Look out Mr. Trump! Aaron is the most admirable, respectable, professional, stand-up guy that I have ever worked for. That supposedly “FOOL” customer from St. Charles has no idea what he’s talking about. You just can’t fix stupid! After becoming aware of Aaron’s unfortunate situation at TWA(The Worst Airlines), where he was basically hung out to dry after several years of hard work and dedication, bounced back and not only started one successful company, but THREE! Now if that isn’t enough reason to give the man a UNANIMOUS decision while his back was against the wall, then I don’t know what is. No matter what the outcome may be, Aaron will ALWAYS be a lifetime achiever. I guarantee it!
Nick Koetting - “The Show Me State”
Hard to tell if any of the alleged victims are praising him on the Inc. Web site, EnchantedAngel. The feds and the state don’t identify victims. It appears that there are a lot of people with the last name Duncan posting praise, and it wouldn’t be surprising if people were praising him in 2006. The indictment says that things didn’t start falling apart until later.