We've got our own Bernie Madoff Jr.!
Leucadia's Scott Bottolfson pleaded guilty to felony wire fraud and faces up to 20 years in prison:
According to a criminal complaint filed Nov. 30, 2010 with the U.S. District Court, Southern District of California in San Diego, Scott Bottolfson through at least two entities he owned and operated – Increase Investments, Inc. and Spirit Investments -- solicited more than $15 million from investors, many from neighbors in the Town of Newbold [Wisconsin] where he had lived for awhile, in exchange for fixed high-rate promissory notes, in at least one case of 20%.
The alleged fraud occurred from approximately September 2001 initially in the Newbold area and from 2005 through July 2010 from Bottolfson's base in Encinitas, California, prosecutors said.
The complaint said that as part of the scheme Bottolfson solicited investors via interstate e-mail and telephone calls and falsely claimed to investors that he could guarantee "high rates of return" for their investments that included commodities futures trading. The complaint said Increase was not registered with the National Futures Association (NFA).
The complaint read here said Bottolfson did not invest all investor funds as represented, but used “as much as 50% of investor funds for personal expenditures.” The “Ponzi” scheme involved giving new investor funds to previous investors and falsely representing those funds as investment returns, the complaint stated. “Defendant returned several million dollars to investors through the Ponzi scheme activity but still caused losses of approximately $6 million,” it added.
One victim, mentioned in the complaint by the initials only as “R.W.”, gave Bottolfson $1.3 million in December 2008 to invest in return for a promised guaranteed rate of return of 20%, but the money was used instead to pay previous investors, according to the complaint.
Details of the case are in this National Futures Association document and this criminal case.
Bottolfson bought the house at 1262 Urania in 2005 for $1.55 million.
HT: Encinitas Patch. Damn they're good.
Lotta slimeballs like him have resided here: Paul Henri Levy for one. Owned a coupla places on the bluff. Now doing time and owes the Feds 47 million. Had a girlfriend that claimed he was a 'self-made man'. Ohhhhh yeah.
ReplyDeleteI went to school with this man's children. I always knew something was off about him...hope he rots in prison.
ReplyDeleteI know Scott and his family well. While the charges are quite sever I am wise enough to know that not everything the government says on a matter is true. Do any of you believe everything the gov has to say about anything?
ReplyDeleteIt's easy to throw rocks, much harder to search for truth. Scott is a kind and true man and I count him as a good friend.
To "Robert said"... have you been a victim of Scott's? Maybe if you were, you would know how we feel. It's obvious you don't know him, but show up at his hearing Feb 11th, hear the victims then seek the truth; otherwise, don't pretend to know someone when you can't see the truth of their lies unless you conspire with that person.
ReplyDeleteTo "Robert said" ... Your belief that Scott is a kind and true man is the exterior. Like you, I believed the same. We had many conversations over the years from approximately 1999 through the beginning of 2010. If nothing else, one thing I do have to say about Scott is that he is not prejudiced. He took money from hard working people; single parents; couples; soldiers who put their lives on the line for our country; professional people; disabled people; elderly people living on fixed incomes and in one case, he was even willing to take a minimal amount from a young couple with two children just starting out in life. All these hard working people are either still working or worked hard their entire lives to be able to live comfortably. Reality is, that Scott and his family were the only ones that benefitted from this entire scam. The rest of us were only hoping to eventually have a better life for our family and friends. No investor with Scott is trying to "throw rocks". We have all lived "the experience" with Scott. Apparently you have not. That is, investing with him and believing his promises. Shame on us. Further, why would someone plead guilty to such a crime if they had not committed it or else try to prove their innocence. I too considered Scott a friend and even told people, when I first heard about this deception, that there was no way he would ever do something like this because he just wasn't that kind of person. He was honest and trustworthy. (This entire comment is something for everyone to think about. What you take from it is up to you.)
ReplyDeleteThought we knew Scott well enough to invest with him. Guess we did not know him at all. Don't know how a friend could swindle a friend. Scott: maybe when you are done serving your sentence, you could invest some of your money with us. We promise you a good return! WHAT A JOKE! Enjoy your life in prison...
ReplyDeleteI've known for a long time most people living in our lovely north county coastal area are deluded if not scamming in some way. I know it isn't possible for most guys around here to be able to afford multi-million mcmansions. you' all are fools!!! Hey I got a gimmick to get you hella returns from the market. give me a call!!!
ReplyDeleteI am related to Scott and am still shocked at the allegations. I grew up with him and he was like a brother to me. I don't believe a blog like this is beneficial to anyone. There were a lot of innocent people -- relatives included -- that have been impacted by this. Scott is probably not reading this, but we are. The stones you all are throwing are hitting us too. It is a far more painful situation for us and even though some of us were investors, I feel some of us believe we are responsible for his behavior even though we are not. So, you are adding to my family's pain by throwing these stones. Let's wait and see what the courts say, and by the way, Scott originally plead not guilty. He took a plea to try to pay some of us back...though I see no way he could do that. All of this is in the court docs. Thanks for your time, and when slinging your bows and errors think of the innocent family members they be hitting.
ReplyDeleteTo the related person: I am sure it's embarrassing to be associated with Scott and what he did and to now have the legacy of a last name associated as a felon as did the last names of Hitler, Stalin or Madoff. Can you tell the courts not one relative benefit a positive return from Scott. Think twice! So, what are you prepared to do? Are you family enough to help pay it back and help restore some dignity? Scott's wife and kids benefited greatly; they received gifts, vacations, cars, money, a wedding and I am sure digging deep enough IRS records may show that Scott "gifted" money to them (not proven just yet). Are these kids willing to give up what they got to help make restitution? What about Scott's wife? Was she that ignorant? I doubt it. I think Scott is drinking her Kool-Aid. Will Scott’s son sell his home in Colorado? Will family of Scott step up and help undo his wrong? So before you tell people "innocent family members are being hit" remember who really benefited. I really hope the shame he brought on to his family will live for generations, again like Bernie Madoff did for his family and history. Scott stole from generations the opportunities that could have been afforded them. It was from those people’s hard work, sacrifices Scott stole. He had no chance to even try to fit this. He rolled like a coward. Sadly, neither Scott, his family or you will ever know the possible education stolen, or businesses that could have helped a community by the money investors lost. Scott the Anti-Christ position is taken, but Satan still has room for you.
ReplyDeleteI understand your anger however members of Scott’s family are innocent bystanders who knew nothing of this. They did not have a choice to be members of his family. Investors on the other hand did have a choice to put their money in a government insured bank account, the stock market or take a risk and hand it over to an individual with a promissory note with limited experience trading commodities who tells them that he can generate a guaranteed 20% annual return during the worst recession this country has experienced since the great depression. I suspect that some of those who lost money have actually earned a substantial amount of money from Scott in the years leading up to this fiasco.
ReplyDeleteI am "the relative" of Scott. My family and others related to him lost lots and lots of money after investing in him. That is what I'm trying to say. We are victims twice over and not ranting and raving as it does not good. Also, don't blame little kids on what their parents do, which is what you are doing as during this period the kids probably had no idea what their father was doing to earn the money to support them. You make alot of assumptions. Hopefully, if you are due, you will have your day in court.
ReplyDeletePS. from "the Relative", It is a mystery to us all how we could not know him at all. Scott was very emotionally (not financially) supportive of me as I went through Stage III breast cancer... I know that doesn't make what he did ok...It just makes it more and more confusing to us his family. His actions have deeply hurt us emotionally and financially as well. I have found that being angry and depressed only hurts me and does not get any of the money back for anyone. I hope and pray that things will be somewhat resolved so those affected can get back on their feet, including you here, and my family, too.
ReplyDeleteScott is a good man....LEAVE HIS WIFE AND KIDS ALONE!! They had nothing to do with the whole thing, and they are just as much victims as you are. I am just glad that the outcome on Feb. 11th is in the hand's of Scott's saivor. And even if Scott does go to jail, It is only because GOD had a purpose for him there...If you wanna be mad at someone, be mad at the government..You would have all gotten your money back if they would have warned scott and given him time to make it right!!!
ReplyDeleteWow! the big anonymous investors that are quick to condemn. Maybe if you followed biblical principles such as the following verses you wouldn't be so screwed up now:
ReplyDeleteProverbs 13:11 Wealth gained hastily will dwindle, but whoever gathers little by little will increase it.
Proverbs 28:20 A faithful man will abound with blessings,but whoever hastens to be rich will not go unpunished.
Luke 12:20 But God said to him, ‘Fool! This night your soul is required of you, and the things you have prepared, whose will they be?’ 21 So is the one who lays up treasure for himself and is not rich toward God.”
I suggest you all invest in God's work and stop trying to be greedy rich pigs !!!
My heart goes out to the 30 investors who were hoodwinked. Scott seemed like a loving father and good husband. How can he be so deceived that what he was doing was hurting several people and families livelyhood?
ReplyDeleteScott's family needs our prayers for forgiveness and healing as they try to make their way in an honorable and upright fashion after the hurt and bad example displayed by their father. You do the crime, you pay the fine. His family need not.
The investors learned that if it sounds too good to be true...it is.
Here is another verse to go with the afore mentioned..1 Timothy 6:17
"As for the rich in this world,
charge them not to be proud, and arrogant, and nor set their HOPES ON UNCERTAIN RICHES,
but on GOD, who richly and ceaselessly provides us with EVERYTHING for our ENJOYMENT."
I hope the 1.5 million dollar home gets sold and the money helps pay back some of the investors.
Praying for God's Grace and Favor to be with the very special Bottolfson family today Feb. 11th. Praying that their day in court will be full of GOD's Grace since none of you seem to have any for him. I know God has great plans for their family no matter what the outcome today. I hope all the investors get any money that they lost, but I know God can do that without their family having to lose everything..and if they do, it will only be because God has something new for them!! Blessings to their family and all who love them and are praying for them today!!
ReplyDeleteI want to apologize for a previous Blog entry on 02/01. The comment greedy pig was uncalled for and I truly apologize for my insensitivity. I allowed my anger to get the best of me and for that I am truly sorry. We all need forgiveness and I hope you will extend it to me as well as to Scott and his family.
ReplyDeleteSeems to me like the relatives now will continue to victimize themselves. I've seen that before. Then one will get mad enough...and do it someone else...and so it goes.
ReplyDeleteNice work here.
I don't understand the comment about relatives victimizing themselves...getting mad and doing it to someone else????
ReplyDeleteListen to you about god and the government... He was playing with the big boys and got in way over his head. Rather then do the right thing he took the dirty road. A church going guy that took them down too. He is smart enough to now better. The investors just trusted him. Don't try to find justification for his behavior in the bible. Wake up and know he is as dishonest as the other scum that does these things.
ReplyDeleteThis is in regards to Feb. 11th 8:58 blog. What do you mean when you know God can give all the money back to investors without having the special Bottlefson family have to give up any of their money. Have you not heard of the butterfly effect. What the dad did touched every life in that household and he has to pay the price..but so do they. Sin does that. Eve ate the apple first...now we are a fallen world. Come on Christians wake up! He deceived you. He used to be in my husbands small group accountability group....he deceived my husband and the other men. Sometimes your heart is for God, but you have a sin area you can't give up. Whatever you sow you reap..and he should reap loss of something since so many lost their lively hood or retirement. If no man can come under authority, which their family could not in the church they were in when knew them...that is a red flag...because they refused to be accountable for their actions and interations with people. Instead of becoming under authority in our church, they left, and last I heard they were coming to CA to start their own church...so is the person defending them now, part of their start up church?
ReplyDeleteWell, I knew Scott and his family when they were back in northern Wisconsin. I had a lot of respect for him when he ran his trucking company. He had what I would call 'Superior salesman skills" way back then. He was kind and compassionate to everyone around him. He had asked me to invest with him and I had considered it for a while. That was just as he was getting ready to move to California and thankfully, I lost track of him before I did. I ran into one of the people who he had scammed yesterday and we talked about it for a while. Is truly sad..... Scott needs to repay every penny and any property or gifts that have his name attached to it need to be seized and sold to pay down the stolen money. When he has served his sentence and paid every penny back maybe then he can reverse some of the damage he has done to his clients, his family and community. What a shame and a waste
ReplyDeletenorthern wisconsin
My child went to school with the Bottolfson children and I'd be surprised if they knew what their father was up to. His wife, on the otherhand? Not so sure she was innocent. If you had money or clout, she had time to talk to you; if not, she didn't bother. It's a shame what happened and nobody should stick up for what that man did. He knew full well what he was doing. I'm not sure five years is enough of a penalty. I hope he doesn't come back to wisconsin.
ReplyDeleteWow! there are quite a few misunderstandings throughout this blog. Scott's relatives are certainly not following in his footsteps at least those that invested in him are not!!! It has been almost a year. I'm with the person that thinks the government should have given him time to make it right. Who's gonna hire him after he gets out with a record????
ReplyDeleteMy uncle Scott lost his way. God will deal with him. If you dont believe that I pray for you.
ReplyDeleteIn the end, there was over $400,000 that Scott tried to hide from investors in two different banks. One was the Bank of Rhinelander. As we closed in on this account, the feds froze it after they said they found no more money and all trails have been looked into. The money was distributed to all victims,but why wasn't it found before when we told Tenorio where he had bank accounts? Well they were not. Chris Tenario, the CFTC (Jason Mahoney, George Malas, John Dunfee) and the NFA all were given detailed bank account information obtained in a deposition from Scott and his attorney. Even with all the evidence presented the State's Attorney and the Judge in the case, Judge Miller could have imposed a much longer sentence. Instead they took a deal and Scott swore (under oath) he gave them all assets. Did you know he still hid from them three vehicles? A second home (a 35 ft travel trailer) so his wife and daughter (who committed suicide) could live in? That he had over $400,000 in two other bank accounts (again under Oath, Scott swore there were no more assets). I'm glad that the other $400k was found and given to victims, but there is still over approx over $1 million (based on the deposition and details of his checking accounts) still missing?
ReplyDeleteAs for saying "my Uncle lost his way". No, he had a chance to make it right not only to the victims, but to God. Well, now Scott's daughter took her life. Wonder why? Did she realize that the spoils were no longer going to be bestowed upon her? Was it too much to live in a lower means of life? I do believe that under the laws in the Bible, generations to come will fall under Scott's curse because when he had a chance to "find his way" Scott chose not to give back, but to deceive others so his life wouldn't be so uncomfortable.
Please know the deposition is not hearsay. Spreadsheets were produced listing every check, every investor who contributed and was paid out along with the check number and the bank account. Remember the bible states that even third and fourth generations to come will be cursed.