Deaf Scam, a Ponzi Scheme, Exposed By SEC
Another Deaf scam scheme reportedly bit the dust! This scammer allegedly bilked Deaf investors out of almost three million dollars. According to SEC, the master of this Deaf scam helped himself to almost 1.4 million dollars. National media, including NBC, New York Times , and ABC are reporting this.
From CNBC: “The Securities and Exchange Commission obtained a court order halting an alleged Ponzi scheme by Hawaii-based Billions Coupons and its CEO Marvin R. Cooper that was targeting members of the Deaf community in the U.S. and Japan.
The SEC alleges Billions Coupons and Cooper raised more than $4.4 million from 125 investors since at least September 2007 by holding investment seminars at community centers for investors who were deaf. ” SEC Halts Ponzi Scheme Targeting Deaf Investors – Law and Regulation * US * News * Story – CNBC.com
New York Times: “Acting in the shadow of Bernard L. Madoff’s reputed $50 billion Ponzi scheme, federal regulators say they have found yet another scheme. This time, they say, it targeted deaf investors.
“A Ponzi scheme targeting members of the deaf community is particularly reprehensible,” Rosalind R. Tyson, regional director of the S.E.C.’s Los Angeles office, said in a statement. ” Ponzi du Jour: Regulators Say the Deaf Were Victims – DealBook Blog – NYTimes.com
Reuters: UPDATE 1-U.S. halts fraud targeting deaf investors | Markets | Markets News | Reuters
U.S. Commodity Futures Trading Commission: CFTC Charges Hawaii-based Marvin Cooper and Billion Coupons, Inc. with Operating a $4 Million Foreign Currency Ponzi Scheme A… Hat tip to T.M.
ABC: ABC News: Another Ponzi Scheme Stopped — and This One Targeted the Deaf
Business Week: Ponzi scheme targets Hawaii deaf – BusinessWeek
Update: This saga has taken an interesting turn. It turns out that Marvin Cooper is Deaf and comes from a Deaf family. At least one feels he is a victim of SEC’s overzealous attempts for making some innocent mistakes. Since I don’t know this person at all, so I cannot say. MZ
2/21/09: Formal Complaint Against Marvin Cooper by SEC: http://www.sec.gov/litigation/complaints/2009/comp20906.pdf
I did more reading and find it hard to believe he is innocent. Out of 4.4 million dollars he used only $800,000 to invest. Out of 800,000 dollars invested, he managed to lose 750,000 dollars. More disturbing is that the allegations that he used 1.4 million dollars for his personal use. According to SEC, he reportedly purchased himself a house with the investors’ money. Obviously these weren’t ‘innocent’ mistakes and multiple laws were violated in the process. MZ
Another Deaf scam scheme reportedly bit the dust! This scammer allegedly bilked Deaf investors out of almost three million dollars. According to SEC, the master of this Deaf scam helped himself to almost 1.4 million dollars. National media, including NBC, New York Times , and ABC are reporting this.
From CNBC: “The Securities and Exchange Commission obtained a court order halting an alleged Ponzi scheme by Hawaii-based Billions Coupons and its CEO Marvin R. Cooper that was targeting members of the Deaf community in the U.S. and Japan.
The SEC alleges Billions Coupons and Cooper raised more than $4.4 million from 125 investors since at least September 2007 by holding investment seminars at community centers for investors who were deaf. ” SEC Halts Ponzi Scheme Targeting Deaf Investors – Law and Regulation * US * News * Story – CNBC.com
New York Times: “Acting in the shadow of Bernard L. Madoff’s reputed $50 billion Ponzi scheme, federal regulators say they have found yet another scheme. This time, they say, it targeted deaf investors.
“A Ponzi scheme targeting members of the deaf community is particularly reprehensible,” Rosalind R. Tyson, regional director of the S.E.C.’s Los Angeles office, said in a statement. ” Ponzi du Jour: Regulators Say the Deaf Were Victims – DealBook Blog – NYTimes.com
Reuters: UPDATE 1-U.S. halts fraud targeting deaf investors | Markets | Markets News | Reuters
U.S. Commodity Futures Trading Commission: CFTC Charges Hawaii-based Marvin Cooper and Billion Coupons, Inc. with Operating a $4 Million Foreign Currency Ponzi Scheme A… Hat tip to T.M.
ABC: ABC News: Another Ponzi Scheme Stopped — and This One Targeted the Deaf
Business Week: Ponzi scheme targets Hawaii deaf – BusinessWeek
Update: This saga has taken an interesting turn. It turns out that Marvin Cooper is Deaf and comes from a Deaf family. At least one feels he is a victim of SEC’s overzealous attempts for making some innocent mistakes. Since I don’t know this person at all, so I cannot say. MZ
2/21/09: Formal Complaint Against Marvin Cooper by SEC: http://www.sec.gov/litigation/complaints/2009/comp20906.pdf
I did more reading and find it hard to believe he is innocent. Out of 4.4 million dollars he used only $800,000 to invest. Out of 800,000 dollars invested, he managed to lose 750,000 dollars. More disturbing is that the allegations that he used 1.4 million dollars for his personal use. According to SEC, he reportedly purchased himself a house with the investors’ money. Obviously these weren’t ‘innocent’ mistakes and multiple laws were violated in the process. MZ
February 19th, 2009 at 2:13 pm
Oh man.
In economic hardships, greed is more obvious… and more suffering for victims.
February 19th, 2009 at 2:39 pm
Right after I was pitched this investment opportunity, I said “Too good to be true”. People need to understand there isn’t a fast way to make money.
February 19th, 2009 at 5:27 pm
Exactly! About being victims by scams. It is really confusion to believe a true which it is kind of scam.
Hurt deaf community who became victims by scam and also encomomic, greedy over the money.
_Don’t___ depoist and asked Teller if it is fraud before you talking the supervisor of Teller. Don’t depoist.
I feel bad for deaf and deaf eldery became trapped and fell off apart their lives.
February 19th, 2009 at 8:53 pm
How upsetting! I couldn’t find any information other than a name, so it is not known if this guy was deaf and used insider knowledge to defraud the community. If that was the case, it becomes worse in its implications for the rest of us.
With recent internet scams targeting the Deaf community, we have seen how people learn about us and use that information to win our confidence.
We need to be doubly on guard because we have our weaknesses in having limited access to information and to resources we trust, and these are used against us.
February 20th, 2009 at 2:38 am
Marvin Cooper is deaf, and has deaf parents and sister.
February 20th, 2009 at 8:21 am
I didn’t even know that he is Deaf until you mentioned it, Sound Investor. I did some checking. Apparently he attended a prominent Deaf school, then transferred to another respected Deaf school where he graduated two years later. His parents are alumni of a reowned Deaf university. According to someone who knows him, he is a computer whiz.
A Deaf acquaintance thinks that he may have made some mistakes, but there was no intention of scamming the Deaf investors, contrary to what SEC claims.
This has taken an interesting turn.
Since I don’t know him at all, I cannot say about his character.
February 21st, 2009 at 1:17 am
Whether or not the perps and/or victims are Deaf or not, this just sucks. Plain and simple. Alright? No need to distinguish this from that as far as the audiological chart goes. It never cease to amaze me how some incessantly down in silly, mind boggling semantics. This just shows how deaf people can be stupid like hearing ones.
February 22nd, 2009 at 6:28 am
Recently, I learned that not only deaf were scammed but a portion, significant in its share, were hearing people. I learned of this from credible sources numbering one each from the Frederick Campus of the Maryland School for the Deaf and the Indiana School for the Deaf both state-run schools Marvin Cooper, his two siblings and parents are associated with those schools as alumni and parents. Because of a tendency on part of certain Maryland School for the Deaf personnel, notably few administrators, at retaliation for any information linking them I have to keep this posting anonymous.
February 22nd, 2009 at 7:48 am
Robert, there is a strong sense of betrayal from having a well accepted known Deaf person scam them. It’s sad.
It’s very unfortunate. The Deaf Community felt very much betrayed some years ago when it turned out that a Deaf investor, called Malzkuhn, also a Deaf Professor of Ohlone College, was involved in a scam. His parents were not only alumni of Gallaudet, but his mother a respected professor and his father a prominent sign master in DC area theatres. The Deaf card may have given Malz his not guilty veredict as many people felt he was guilty and wasn’t conned, but a willing partner. Since I don’t know him and wasn’t there, I cannot say. In his defense, it was reported that he sent most of the money to Africa, the origin of the scam. More than that, I don’t know anything.
Anyway, there is a deja vu feeling.
February 22nd, 2009 at 6:15 pm
I met him, I am so glad that I didn’t invest my money in the forex market! I had a bad gut feeling so I backed it out. Marvin is a scumbag to deaf community. He took an advantage of deaf people. I guess he was laughing all the way to his bank as he called them deaf and dumb!
February 22nd, 2009 at 8:39 pm
FYI
SEC Halts Ponzi Scheme Targeting Deaf Investors
http://www.sec.gov/news/press/2009/2009-30.htm
As late as January 2009, while Marvin Cooper knew that SEC was investigating him, he continued to deposit money—from the new investors—into his account. The document showed that Marvin Cooper did not register as a broker.
February 23rd, 2009 at 10:50 am
the deaf are the most discriminated and the least paid workers. and most of them lack formal education per se. they just systematically fell through the crack. advocacy for them are hard to come by. they do not know how to cooperate among themselves for their own protection and advocacy.
hooray for SEC. the perps whether deaf or hearing are caught red handed. hopefully the victims will eventually get all their money back.
February 24th, 2009 at 8:46 am
My review of the formal complaint filed by the SEC leads me to believe Marvin initiated the ponzi scheme simply out of greed. He didn’t register as a broker. I heard he told investors he was.
Also Marvin promised a return of up to 25% compounded interest every month depending on the amount invested. To keep the promise he would have to invest the entire amount of $4.4 million in foreign currency trading. But he only invested $800,000 and has lost more than $750,000. That’s another fact that led me to believe he has greedy intentions.
The saddest part is Marvin’s ties to the deaf community (himself being deaf, from a deaf family, and graduating from a deaf school). He used these ties to benefit himself financially.
I’ve heard that Marvin’s father was the bookkeeper of the company. I’m not sure if its true or not.
Let this be a lesson to all current and future investors — if it is too good to be true then DO NOT INVEST! There’s no such thing as a perfect investment strategy. You must invest for many years to make $$ for retirement. Patience is virtue!!!!
February 24th, 2009 at 8:27 pm
I love invest to Edward Jones investing company I trust for twenty yrs safe money your life! Just simple make money grow and you must understand how to do with IRA retirement and others as more info. Wow scam pfft.
February 24th, 2009 at 8:42 pm
One thing add if you have benfit investing company if I died then I plan gift from my IRA retirement and other investing to children or spouse get money just make rules if Children or spouse get money by early age cannot get money until you will get money more become rich until become 59 1/2 yrs old plus money checking acct for special payment like college tution or owe credit card pay off etc. Much more depends on Children ages as long investing grow. See that you have be patient future! Think about it. I have see many deaf victims made lust fast money that impossible to me.
March 3rd, 2009 at 10:08 am
Jamie Clark’s name was mentioned in article. I wonder if it’s the same Jamie Clark of the old ClarkNET and provided great service:
http://www.honoluluadvertiser.com/article/20090303/NEWS20/903030324/1170
Seriously, I hope not…
If I have kids I think I need to come up with more unusual names!
March 3rd, 2009 at 10:55 am
I read that article earlier, but overlooked the name. Thanks for alerting me to the name.
oohh
I don’t know what to say.
March 6th, 2009 at 11:09 am
If you have a gut feelings that this is hard to believe in making fast money, follow it. Don’t let anyone like Marvin or others convince you!! Your gut feelings is trying to warn you.. Just follow your gut!
I was asked, persuaded, and begged to be in this and others investment schemes (Cooper, Freedom, Diamond trade). My gut tells me, “Noooo, its gonna flop, its a fake, its all about greed!” and I followed it. Am glad I didn’t take part of any of those schemes but is saddened to see my friends losing money to them. Please wake up and follow your guts. Do it the honest way! Earn those hard working money the right way. It’s like everyone says “There’s no easy fast money!”
June 1st, 2010 at 8:34 am
I know from experience that attorney’s at the SEC are basically liars. They try to generate headlines for their cases and the honest attorney’s don’t survive because they can’t bring enough cases. Although I am in no way saying that this individual is not guilty, you should read the SEC case and the defendants Wells Statement before for drawing conclusions. 50/50 chance that the SEC is exaggerating or flat out lying about the situation so do your due diligence before throwing stones.
June 5th, 2010 at 10:50 am
Hey Barron, Did you go to Pittsburgh School for Deaf
June 5th, 2010 at 10:54 am
OOOPs , Barron meant Western Pennylsvania School for the Deaf, in Pittsburgh, Pennsylvania. Please let me know.