Bethesda Man Accused Of Operating Ponzi Scheme | WAMU 88.5 - American University Radio

WAMU 88.5 : News

Filed Under:

Bethesda Man Accused Of Operating Ponzi Scheme

Play associated audio
http://www.flickr.com/photos/dborman2/3258378233/

The SEC is accusing a Bethesda man of operating a Ponzi scheme that lost middle class investors, churches and a charity for children with special needs millions of dollars. Garfield Taylor promised a 20 percent return on investments, according to SEC allegations, but records show the investments Taylor and his associates, which included family members and friends, were making were risky and lost millions.

Stephen Cohen with the SEC says Taylor even forged documents in a desperate attempt to woo new clients: "People believed that they were actually earning money on their investments, but in fact in he was bringing in new investors and taking their money and giving it to older investors."

One of the clients was the Hillcrest Children and Family Center. The charity, founded almost 200 years ago to help orphans of the war of 1812, invested $8 million, about half of its total endowment with Taylor. All of that money used to help children with special needs was lost.

"Mr. Taylor and others skimmed about $5 million out of moneys that they brought in and used it to pay for personal expenses," says Cohen.

Some of that money was allegedly used to pay $73,000 for the private school tuition of Taylor’s children.

Taylor did not answer  the door of his  multimillion dollar home in north Bethesda when we tried to get his side of the story. The  civil lawsuit is seeking an injunction against Taylor and five associates from further investment trading and the return of as much as $27 million to Taylor’s clients.

NPR

'Ghettoside' Explores Why Murders Are Invisible In Los Angeles

In her new book, journalist Jill Leovy studies the epidemic of unsolved murders in African-American neighborhoods and the relationships between police and victims' relatives, witnesses and suspects.
NPR

Will Environmentalists Fall For Faux Fish Made From Plants?

A handful of chefs and food companies are experimenting with fish-like alternatives to seafood. But the market is still a few steps behind plant-based products for meat and dairy.
NPR

Abortion Vote Shows How Much Democrats' World Has Changed

Of those 64 Democrats who cast a key anti-abortion vote in November 2009, only 12 remain in the House today.
WAMU 88.5

Drone Found On White House Grounds, Not Regarded As Ongoing Threat

A drone landed in a tree on the White House grounds shortly after 3 a.m. Monday morning, touching off a security response.

Leave a Comment

Help keep the conversation civil. Please refer to our Terms of Use and Code of Conduct before posting your comments.