Earl Jones - Scams and Fraud
Earl Jones was born in Montreal on June 24, 1963. He started to work at Montreal TRUST for over 16 years; he worked 8-10 different positions including investment management, estates, trust administration, will planning and manager of the mortgage department. In 1970 Jones left the company to start his own business, he began holding courses on taking care of finances. He then launched a company he called “Earl Jones Consultant and Administration Corporation, an administrative and financial advising” (Gazette, 2010). He began to make withdrawals from his bank account, into which he deposited his client’s money. Earl Jones is a “White Collar Criminal” which is “members of the rich and powerful who used their positions for personal gain ignoring the law and the consequences for others. He surmised that white-collar criminals damaged the social relations between citizens and their government, clients and professionals and consumers and corporations” (Sutherland, 1940). Earl Jones grew up in a family whom barley made it by with money, this contributed to his personality later in life. Earl Jones felt the need to fulfill his desires of better schools for their children, keeping up the appearance of greater wealth than he was able to afford as a status symbol (Sutherland, 1940).
Earl Jones scheme works by simply paying old investors the funds collected with new investors. The fraud can only continue just as long as there was a continued flow of new investors. Jones had made a promise to his clients that they will achieve an above normal rate of return. (Moffatt, 2012). In 2005 Jones set up nine mortgages valued nearly two million dollars; he convinced many of his clients to re-mortgage their homes. In 2008 he switched to, a commercial account, he still continued to print ‘in trust’ on cheques he was using with clients.
Earl Jones had claimed to be a financial advisor. All the payments he had made showed as an administrative expensive.
Earl Jones scheme works by simply paying old investors the funds collected with new investors. The fraud can only continue just as long as there was a continued flow of new investors. Jones had made a promise to his clients that they will achieve an above normal rate of return. (Moffatt, 2012). In 2005 Jones set up nine mortgages valued nearly two million dollars; he convinced many of his clients to re-mortgage their homes. In 2008 he switched to, a commercial account, he still continued to print ‘in trust’ on cheques he was using with clients.
Earl Jones had claimed to be a financial advisor. All the payments he had made showed as an administrative expensive.
References: The Gazette. (2010). Earl Jones Scandal. Retrieved from: http://www.montrealgazette.com/news/earl-jones/index.html Sutherland, E. (1940). White Collar Criminality. Handout presented at SOCS10261G, Sheridan College, Oakville. Moffatt, M. (2012). Ponzi Scheme. Retrieved from: http://economics.about.com/od/financialmarkets/f/ponzi_scheme.htm Macelellan, N. (2009). Earl Jones – A Canadian Ponzi. Retrieved from: http://beforeyouinvest.ca/2009/07/earl-jones-canadian-ponzi/ CBCNEWS. (2009) Ponzi Scheme Suspects Family express ‘Grief, Shame’. Retrieved from: http://www.cbc.ca/news/canada/montreal/story/2009/07/20/earl-jones-family-statement.html The New York Times. (2013). Bernard L. Madoff. Retrieved from: http://topics.nytimes.com/top/reference/timestopics/people/m/bernard_l_madoff/index.html