One of the ways Bernie Madoff collected so much loot for his Ponzi scheme was to take money from feeder funds.
Imagine financial professionals charging their clients rich fees just for taking their money and giving it to Madoff or even the lesser-known Tom Petters, alleged to have run a $3.5 billion Ponzi in Minnesota.
This is exactly what Neal Greenberg and his Agile Group did, according to a lawsuit recently filed in Boulder, Co.
Greenberg even set up some Rube-Goldberg-like financial machinery that converted his clients’ reasonably safe annunity plans into reckless spins at the Ponzi wheel, the lawsuit said, allowing him to charge enormous fees.
Greenberg sucked in former U.S. Congressman Tom Tancredo with a little help from conservative talk radio show host Mike Rosen. Greenberg paid Rosen to hawk Agile for years. Click here to hear Rosen’s radio spots on Agile.
Both Rosen and Tancredo lost significant portions of their life savings in what this lawsuit calls “a leveraged hedge fund of leveraged hedge funds,” or perhaps more succinctly, an alleged Ponzi of Ponzis.
Click here to read my column.
Click here to read the complaint.
Click here to read what I wrote about Agile when I first broke this story in February.
Click here to watch my discussion of Agile on Fox Business News in February.