It is a sad day for CPA’s in Arizona as, according to the Arizona Republic, a former CPA, Mr. Dan Wise, 52, of Scottsdale, Arizona was arrested on Wednesday for masterminding a $67 million ponzi scheme.
According to the Arizona Republic “From July 2001 to January 2009, Wise raised more than $67 million from about 125 investors by touting his 10 to 15 years of experience in real estate investments, authorities allege. He lured investors with promises of lucrative annual returns ranging from 12 percent to 22 percent. Wise claimed to use investor funds to make short-term real estate loans that would be fully secured and assured investors they could obtain their money anytime with a 24- to 48-hours notice, according to the complaint. The complaint further alleges Wise never funded real estate loans, never paid the promised returns to investors, and never honored investors’ redemption requests.”
According to WebCPA “The Arizona Board of Accountancy had revoked Wise’s CPA license last December, accusing him of violating ethics rules and misappropriating his client’s tax payments that were supposed to go to the IRS.”
To see the full Arizona Republic Article – http://www.azcentral.com/news/articles/2009/04/16/20090416sr-ponzi0418.html
To see the full WebCPA article – http://www.webcpa.com/article.cfm?articleid=31343
Robert K Minniti, CPA, CFE, Cr.FA, CFF, MBA
Arizona Society of CPAs
J. Michael Stolp
mhstpt
Robert K Minniti, CPA, CFE, Cr.FA, CFF, MBA
Ed Zollars, CPA
Jason Washo, CPA, PFS
dsscpa
cguerriero
Cindie Hubiak, CPA
Jose Herrera
Heidi Frei