by Brian Mahany
Daniel Parrilli of Carol Stream, Illinois was convicted one decade ago of fraud and sent to prison. Did he repent for his sins? No says the FBI. While serving his first sentence, Parrilli met Christopher Andersen. The two became prison buddies and hatched a new Ponzi scheme. Prosecutors say the duo bilked another 100 investors out of $4 to $7 million.
According to an FBI complaint filed in a Chicago federal court, Andersen and Parrilli created a company called Sundown Entertainment. The pair told investors Sundown made money through the sale of films and comic books. Investors were promised a rate of return between 25% and 100% in as little as 1 week.
Parrilli and Andersen did not tell investors that they were convicted felons nor did they disclose that they had defaulted on their obligations to other investors. At the time of the new Ponzi scheme, Andersen still owed $6,226,669 in restitution from his first fraud case. Parrilli owed $394,100.
Like all Ponzi schemes, there comes a day of reckoning when there simply isn’t enough new money to pay off the earlier investments. As the scam began to crumble, both men would try to convince investors that there money was being held up by the Terrorist Act. That’s right, invoke patriotism and blame the government for the missing money.
The case is on-going. Once again, some simple due diligence and common sense could have prevented this Ponzi scheme from being successful. Common sense? Expecting to receive a 5200% rate of return that is guaranteed should have been a red flag.
Mahany & Ertl is a full service boutique law firm that assists victims of fraud recover their money. Our Milwaukee based asset recovery and fraud recovery lawyers have helped clients from Maine to Hawaii. We have successfully brought actions against lawyers, securities brokers and financial professionals for their negligence in a wide variety of frauds and investment schemes. From welfare benefit plans to Ponzi schemes to bad investment advice, we can help.
For a no obligation, no nonsense review of your case, contact Brian Mahany directly at (414) 704-6731 or through the firm’s website at https://www.mahanyertl.com