In another New York City Ponzi-Scheme prosecution, Brian David Anderson, a Canadian citizen, was sentenced today to 90 months in prison for running a $4 million investment fraud and Ponzi scheme. Mr. Anderson pleaded guilty to wire fraud charges earlier in 2008.
In the course of running the scheme, “Frontier Assets, Anderson raised millions by making false representations to investors, promising high rates of return, in order to induce them to provide millions of dollars in investment money. However, he didn’t use the money for any investments, but to pay off prior investors.
While marketing Frontier Assets, Anderson described it as as an exclusive private loan program, a “major International Business Corporation” that participates at the “private banking level of several significant European and Asian banks.” Frontier Assets represented that it was able to to place investors with offshore entities, and real estate development projects around the world, as well as other false statements. The Frontier Assets brochures promised that all investor loans were fully secured and guaranteed and in the event of a disruption in the program, the principal amounts of loan were “guaranteed to be returned within 60 days.”
Of course, no investments were made and numerous investors lost millions of dollars in this Ponzi scheme. Besides sentencing Anderson to prison, the New York City Federal judge has also ordered him to pay restitution to the victims.
