Scouts Try To Recover Funds Lost In Ponzi Scheme
|By Ben Lockhart, Standard-Examiner, Ogden, Utah|
|McClatchy-Tribune Information Services|
The council, which is the administrative body for the Scouts throughout the Top of
Randall, a 63-year-old
Trapper Trails is one of 87 creditors listed in the class action lawsuit against Randall, initiated in the
Institutions much larger than Trapper Trails also claim Randall fooled them. Creditors who submitted claims in the class action lawsuit include financial giants
The lost investment didn't affect Boy Scout troops in the region, Gunter said.
"The funds invested in this opportunity were not related to the council's operating funds, nor to the monies raised by local units, and have not had an impact on local Scouting activities or to the delivery of the program," he said.
Since allegedly getting burned by Randall, Trapper Trails has updated its investment practices.
?"As a result of this issue, the council has strengthened its investment policy and conflict of interest policy and now works through an investment manager with BSA National," Gunter said.
Trapper Trails' original lawsuit indicates
Randall's arrest warrant was recalled and his
Randall is charged with 23 felony counts of securities fraud, one in the third degree and the rest in the second degree, in
Gunter said the council would support a full criminal punishment of Randall.
"We appreciate and support the legal system of
Randall allegedly engaged in several years of investment fraud using various financial organizations which he then owned or managed: the
Randall would promise low-risk, guaranteed returns on investments between 9 and 17 percent, his charges state. He would allegedly use those funds to keep his various financial enterprises afloat rather than investing in properties or other business opportunities as he had agreed.
Almost none of Randall's employees were licensed to sell securities or insurance, prosecutors say, and he himself hadn't been licensed in either industry since 1997.
Randall reportedly operated his several businesses throughout
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