Covington, Georgia Ponzi scheme victims can recover restitution
On Friday, a Watkinsville, Georgia physician assistant, Ulys Randall Riner, pleaded guilty in Newton County to running a Ponzi scheme in which he stole more than $4.5 million from investors. Prosecutors believe that Riner stole from more than 20 Georgians, and that most of the victims were his friends.
The Atlanta Journal Constitution has the story.
Riner was arrested in 2006 for using a strategy called “factoring” in which he sold fraudulent promissory notes to investors. Specifically, Riner would use the money attained from investors to buy discounted accounts receivables on government contracts. Prosecutors allege that he told the investors that they would receive a full return. He would then sell the promissory notes through his business, Express Factors. He would take that money and pass it on to other companies, and when those companies failed, he used funds from new investors to hide the money that was lost.
Riner was indicted in 2006 on 29 counts for selling unregistered investments and was set to go to trial on October 26. However, he entered a guilty plea on October 23 in which he agreed to pay back $2 million to investors. The plea stated that he will pay $125,000 within 60 days and then $2,000 per month. Investors are set to be paid based on a percentage of what they gave Riner. That amount ranges from $2,000 to $650,000. In addition, he agreed to 17 years on probation with two years in a work-release program. The judge also let Riner plead first offender which may help him keep his medical license.
This criminal prosecution may also lead to a civil suit against Riner and other responsible parties. Our business fraud attorneys have successfully represented several clients who have fallen victim to Ponzi schemes and other unscrupulous investment practices. In our experience, the criminal justice system may punish the offender and force some restitution, but it often fails to fully compensate a victim of investment or business fraud. A good business fraud attorney will work with prosecutors, law enforcement and investigators to find every possible source of money an offender has to ensure that the victim is fully compensated for his losses in civil court.
Pate & Brody is an accomplished Georgia law firm with offices in Atlanta, Macon and Madison. Our lawyers are dedicated to pursuing justice for crime victims, people who have been defrauded by deceptive business practices, or injured through the fault of others. Our lawyers have been recognized on the list of Georgia's "Super Lawyers", and included among Georgia's "Legal Elite" by Georgia Trend Magazine.
