Several investors in an alleged Ponzi scheme are suing those alleged to be involved in the financial fraud for the return of $150,000 in investments, according to a notice of civil claim filed March 27.
Fort St. John resident Dereck Renberg, his wife Trina Renberg and his mother Sharon Renberg are suing Keith Alexander, 1127477 Alberta Ltd., 0827213 B.C. Ltd., Kari Lynn Alexander and Brian Alexander for allegedly being complicit in a Ponzi scheme presumed to be executed by Doris Nelson.
The Renbergs allege that Keith Alexander met Dereck Renberg in February 2006 and that Alexander made representations that he:
- was involved in a payday loan business called the Little Loan Shoppe (LLS);
- had personally loaned money to LLS at an annual interest rate of 50%;
- was intimately familiar with LLS' business and with Nelson, who he believed to be an honest businessperson running an extremely profitable business;
- knew that LLS needed capital for its expansion;
- knew that the minimum loan that could be made was $10,000;
- knew that 1127477 Alberta Ltd. would pay an annual return of 40% to the plaintiffs in monthly interest payments;
- would guarantee the return of money invested.
"The representations made by Keith were made by Keith knowing that they were false or in reckless disregard with respect to their truth or falsity and with the intention that they be relied upon by the plaintiffs," the Renbergs allege in their notice of civil claim.
The Renbergs then progressively advanced more money to the defendants as they received what were purported to be monthly interest payments.
LLS then allegedly petitioned itself into bankruptcy in U.S. Federal District Court.
Nelson and others were allegedly arrested and charged with fraud in respect to the Ponzi scheme in August 2011, according to the lawsuit.
No response to the notice of civil claim had been filed by press time.
None of the allegations has been proven in court. Proportion of firms in 2012 top 100 that held their market cap, down from 61% in 2011
