Idaho sues again as swindles spread
Thursday, March 26 2009 @ 05:30 pm EDT
Contributed by: Don Winner
According to the lawsuit:
Potter, Driscoll, and Bentley and their companies violated Idaho's Uniform Securities Act. The men never purchased any life insurance with investors' money but instead sent the money out of state. It ended up in Panama. The men paid returns to their initial investors with funds from later investors.
Potter managed the now-defunct North American Capital Trust and is still listed as the manager of Pacific Partners, both of which are at 4831 Fern St. in Nampa.
Bentley and Driscoll, who now live in St. George, Utah, split with Potter in late 2007, but Potter kept soliciting money under the Pacific Partners and Silverstone Equity businesses - money investigators say was used to make Ponzi payments to earlier investors and for Potter's personal use.
None of the three men was licensed in Idaho as a broker, and the securities they sold were not licensed by the federal Securities and Exchange Commission.
Investigators say the three men began selling the bogus investments in May 2007. Some recipients were paid their monthly return until fall 2007, when all payments ceased.
Prospects for recovering the investors' money appear limited. It appears all the money was lost after it was sent to Panama, Burns said.
Investigators say there appears to be an element of "affinity fraud" involved - a type of scam that targets members of a particular demographic, like a church or ethnic group. Burns said many of the investors were members of the same church.
A phone call to Potter at the Nampa address was not returned Wednesday.