Financial Host Hit By SEC Ponzi Scheme Suit
November 25, 2009 at 4:34 AM (PT)
A financial talk show host whose program aired on the shortwave WORLDWIDE CHRISTIAN RADIO network has been sued by the SEC and the COMMODITIES FUTURES TRADING COMMISSION, along with another man, for running a $190 million Ponzi scheme.
PATRICK KILEY, host of "FOLLOW THE MONEY," and money manager TREVOR COOK have been sued in separate actions by the two agencies and their assets have been frozen by emergency orders, according to the MINNEAPOLIS STAR-TRIBUNE.
Investors in KILEY's investment programs, which involved unregistered securities and promises of 10 to 12% returns, previously filed suit in JULY to try to get their money back; investors were allegedly told that their money was in accounts at a Swiss firm that has gone bankrupt, but that the accounts seem never to have existed, with the money instead going into accounts in the U.S. held by KILEY or his associates, then vanishing. KILEY's brothers, from whom he is estranged, are former radio personalities.
A hearing is scheduled for DECEMBER 4th on a motion for a preliminary injunction, and a federal grand jury is considering criminal charges in the case.