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July 17, 2012

Financial Fraud Alert: Alleged Ponzi Scheme Between Derivium Capital, LLC and Bancroft Ventures, LLC

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This complaint stems from a Ponzi scheme allegedly perpetrated through two companies, Derivium Capital, LLC and Bancroft Ventures, LLC.  According to the complaint, Derivium and Bancroft engaged in a “fraudulent . . . scheme known as the 90% Loan Program.”  The allegations state that the 90% Loan Program was “marketed to the general public . . . as a way for owners of securities to borrow up to 90% of the value of the securities without creating a taxable event.”  The Ponzi scheme allegedly involved soliciting individuals to pledge securities as collateral for loans that had a 27 to 38 year maturity.  Once those securities were pledged as collateral, however, the allegations state that that the securities were sold and 10% of the sales proceeds were “converted, dissipated, and distributed to the Derivium Principles.”  

Click on the above PDF link to view the full alert.

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