SEC halts alleged $34 million Ponzi scheme

Saturday, June 26, 2010


SEC halts alleged $34 million Ponzi scheme

The government said Friday it obtained a court order to halt an alleged $34 million Ponzi scheme targeting federal employees and law enforcement agents nationwide with promises of safe investments in a nonexistent bond fund.

The Securities and Exchange Commission said the order issued Thursday by a federal judge in Miami also froze the assets of the estate of the late Kenneth Wayne McLeod, his consulting firm Federal Employee Benefits Group of Jacksonville, Fla., and an affiliated investment firm. The SEC alleged that McLeod and the firms defrauded an estimated 260 investors starting in 1988.

Representatives of the firms couldn't immediately be located for comment Friday.

-- Associated Press


Lexus HS250h being recalled over gas leak

Lexus is conducting a safety recall of as many as 17,000 2010 Lexus HS250h hybrids, after testing by the National Highway Traffic Safety Administration showed that the cars can leak gasoline after a simulated crash.

While the automaker's tests show no such problem, the company said it is seeking to find out why the test results differ and to identify a remedy.

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