Thread: Banners Broker HYIP ponzi scam

Originally Posted by okosh

You'd think that Chad Foss and the others would have learned a lesson after the CEP clawbacks.....
SEC v. Colon End Parenthesis Trust LLC

That's the rub. Chad did learn, and learned well. You see, Foss was a net winner of just shy of $46,000 but only had to pay back $20,000 on an initial investment of less than $500. So while the investors who were net losers got back I think about 3-5% of what they put in, Shad got to keep all of his investment and $26,000 profit. He didn't get slapped down, he just had to give up less than half his profit. Had he been a net loser, he would have gotten back $15-$25, but instead he got $26,000.


I like Bill Perkins, and at the time it was revolutionary for someone to go after the net winners for clawbacks, but letting them keep a single penny turned out to be a bad idea. All that it did was establish that if they fought the receiver, they end up keeping most of their stolen money.