By Harold G. Martin, Jr., CPA/ABV/CFF, ASA, CFE, Director
Harold Martin shared his insight on the Vavasseur Prime Bank Securites Fraud Scheme in an article featured in VSCPA’s Disclosure Magazine.
Before the news of the alleged Ponzi scheme involving Bernard L. Madoff Investment Securities LLC. that is linked to the estimated loss of $50 billion, the state of Virginia had links to another individual who was investigated for a Ponzi scheme years before. Terrence (“Terry”) Lee Dowdell, a local to Charlottesville, VA, offered fictitious securities through his corporation called Vavasseur Corporation. The March/April 2009 edition of Disclosures includes an article by Harold Martin, now current Director of our Valuation and Forensic Services Practice at Keiter.
Excerpt
‘The Vavasseur Prime Bank Securities Fraud: A New Twist on the Classic Ponzi Scheme’
“In April 1998, Terry Dowdell, then a resident of Florida, formed the Vavasseur Corporation as a Bahamas-based entity and began his version of the prime bank lending scheme. In reality, Vavasseur never conducted any legitimate business. Dowdell represented to investors that Vavasseur would buy short-term $1 million notes issued at a discount by Barclays bank in the United Kingdom. These notes represented debt issued by governments for off-balance sheet activities (e.g., covert activities). Dowdell claimed he could sell these notes at face value to buyers and the investment fund would realize the spread as profit-as much as a 70 percent annual rate of return.”
Access the Full Article here.
The Vavasseur Prime Bank Securities Fraud: A New Twist on the Classic Ponzi Scheme
About the Author
Harold G. Martin, Jr., CPA/ABV/CFF, ASA, CFE, Director
Harold G. Martin, Jr., is a Director in Keiter’s Valuation and Forensic Services Group. He has over 40 years of experience and specializes in valuation and forensic accounting, including financial investigations and litigation consulting and expert witness services. He is a frequent speaker and writer on valuation topics.
More Insights from Harold G. Martin, Jr.The information contained within this article is provided for informational purposes only and is current as of the date published. Online readers are advised not to act upon this information without seeking the service of a professional accountant, as this article is not a substitute for obtaining accounting, tax, or financial advice from a professional accountant.
