Description :
Private Investment Company leaves investors wondering
Private investment firm, Arcadia Investment, LLC, develops a pattern of bad investments with too good to be true returns, leaving angry investors demanding full transparency. 
FROM THE MAN’S DEN | BY MICHAEL LALIBERTE | FEBURARY, 2014
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The Truth shall set you free

When it comes to providing tax, accounting and bookkeeping services, Michael Dobbs of Irvine, California is brilliant. His accounting and taxation ethics over the past 25+ years are beyond approach. The IRS has had no qualms with Dobbs keeping and maintaining accurate records and staying abreast of the necessary taxation laws in the event of any Government inspections. But when it came to investing other people’s money and being transparent with his records, Dobbs is a different man.

Bill Betz of Guffey, Colorado has been trying for over a decade to get Dobbs to open up the “books” to show where investors’ money went and who is responsible for their losses, but Dobbs has lawyered up. 
“We have been trying for over a decade to get Dobbs just to show us some evidence;” says Betz who also acts on behalf of other investors who also want answers. 

We tried to contact Dobbs but our calls have gone unanswered.
Based on the information obtained from court records, police statements, interviews, several email exchanges and letters between Investors and Dobbs, and other searches with bank investment advisors and tax officials, we’ve attempted to piece together what may have happened to investor funds, and that an illusion of an investment still exists today. 

Dobbs private investments involved, High-Yield Interest Programs, Bank Debentures & Bank Debenture Trading Programs. 

The Cohen Deal: 1998 to 1999 Dobbs states, he and Greg Hall of Toronto, Canada started investing with Mark Cohen with 3.7 million of investor funds. 

After several telephone conference calls, face to face meetings and other due-diligence with a self-proclaimed Boca Raton Lawyer Mark Cohen, Greg Hall was convinced Cohen was one of the “very privileged” few people in the world who was an expert in trading bank debenture trading programs. 

The bubbly, talkative Cohen couldn’t stop stressing the “enormous profits” that could be earned in medium term bank debenture trading programs involving European banks. “I made the United States Diocese of the Greek Orthodox Church a 1000% profit on a million investment,” Cohen boasted with Hall during one of their meetings. Legal experts in other legal international finance testified, “This cannot be done.” 

Cohen continued to bolster his credentials stating that he had graduated from the London School of Economics and was later hired by the U.S.S.R. to render a legal opinion on bank debenture programs. Cohen also states that the U.S.S.R. had introduced him to Barclay’s Bank in London, England where he established a trading account to trade bank debentures, making these debenture programs and Cohen, appear more legitimate. There are no known records that verify any of these assertions made by Cohen. 

An investment agreement contract between Cohen and Hall had been ironed out in which profits made from the trading program would be split 50-50. Cohen also stated that all participants in his bank trading program had to establish a charitable organization to receive a portion of these profits that would be earned from this investment contract. Hall forms Arcadia resources, LTD of the British West Indies in Nevis. It is believed that Dobbs’ Arcadia Resources Investments, LLC “A Private International Investment Group” was already in operation before the date these investments occurred. 

The agreement also provided that Cohen could make “no investment or other distribution of the fund unless there is a guarantee at least equal in principal amount to the funds distributed or invested” making everything appear secure with Hall and all the other investors.

Hall, who befriended William Charles Rath of Uniondale, Ontario Canada after meeting Rath and Alexander at a conference in Cancun Mexico, became a promoter/investor along with Ross Clark Alexander of London, Ontario Canada to recruit Canadian investors while Dobbs recruited some of the U.S. investors. 
Dobbs may have sent investor funds to Hall’s Arcadia Company. However, it was Cohen who instructed Hall where investor funds were to be wired.

All funds were wired to off-shore bank accounts controlled by another entity in another Country. Records indicate that Alexander and Rath deposited investor funds directly into off-shore bank accounts on behalf of Arcadia Canadian investors. 

Between Hall’s and Dobbs’ Arcadia companies they raised 3.7million between 1998 and late 1999 for Cohen’s bank debenture program and were expecting a 400% return in the first 40 weeks in trading. None of the investors received their money back, except two payments in the amount of 75,000.

Court documents filed by Baton Rouge, Florida lawyer Donald L. Beckner, on behalf of Hall, allege that Cohen, and several other of his cohorts were not investing investor funds in bank debenture trading programs .The United States Treasury and the Federal Reserve System denies the existence of these programs. U.S. based Financial & Tax Fraud Education Associates assert on their web page, “Bank Debenture Trading Programs are one of the most common scams.” 

The Turks and Caicos Investment deal (TCI) from: 1998 to 2000 | Arcadia U.S. Investors 2 to 3 to million 
Dobbs, in a letter sent to Betz states in February 2013 asserts, “Mark Cohen got cancer, and they decided to get out of that business and put all their investor funds into TCI. Neither Hall nor Dobbs mentions to investors that the Cohen deal was an alleged fraud. However, it appears the storyline of the TCI deal ran along the same lines as the Mark Cohen deal, High-Yield Interest Programs that also involved European banks.

Dobbs states in a separate statement made with the FBI, in which he was cleared of any wrongdoing, that in 1997 or 1998 he” started recruiting others to invest, from family and friends and clients of his tax business, in TCI through Arcadia. Dobbs estimates he “received about 3 million from his investors from 1998 to 2000 and of that amount he sent 2 million to TCI.” It has not been determined where the proceeds of the remaining 1 million went; however there was no sufficient evidence in the FBI investigation in 2011 to bring any charges against Dobbs He was also cleared of an IRS audit in 2002 after the TCI deal went down the drain. 

Dobbs, an investor himself in TCI, made about 230,000 from his 70,000 investment. He controlled the Arcadia investor fund Citibank bank account and would withhold investor funds back to pay investor requested withdrawals. Dobbs states, after consulting with his lawyer, “for some period of time while TCI was still operating properly, he would take money provided by his investors that was supposed to be sent to TCI and would instead pay off his investors who wanted to make a withdrawal.” 

While this method was “doable,” Dobbs states his lawyer said, The Accounting Professional Ethical Standards disagrees in regards to trust accounts. “Dobbs, as an accountant, should know these funds were basically held in trust for a specific purpose.” A risk management firm told us that Dobbs’ reasoning was to speed up the process because it usually took TCI about 120 days to pay requested withdrawals.

Dobbs states he recruited about 100 investors for the TCI deal, and would mail out monthly statements to his Arcadia investors reporting what their account balance and status was. However, around 2000 TCI stopped paying Arcadia U.S. In 2002 TCI stopped all communication with Dobbs. 

Canadian transcripts show that in 1999 William Rath was disappointed with Hall’s job as manager of Arcadia Canada after the loss of 3.7 million in the Cohen Bank Debenture deal. Hall turned over control of the TCI bank accounts he controlled for Arcadia and TCI investors to Bill Rath after being paid 400,000 to take a hike. Hall fought Examination of Discovery meetings for the TCI class action civil suit filed on behalf of Canadian and other U.S. investors from Michigan and had to be court ordered to attend them. The new TCI principals cut Dobbs out of the picture all together. 

When Dobbs came to realize there were problems with TCI paying in 2000, he stopped recruiting and receiving investor funds for TCI. According to our records, 65,500 was paid to Arcadia between January and September 2001. 
Dobbs states he contacted the FBI, SEC and The Federal Reserve after 2005 when TCI’s website was completely shut down. He received very little cooperation. 
Our records indicate that in June of 1999 TCI was moved to International Investment Group (IIG) based out of Hamilton, Ontario Canada. Steven Hawkins and Lars Soderstrom were the principals who, once again were investors in Bank Debentures and approx. 4.5 million of TCI funds were transferred to the IIG account. Rath hired Tony McCreath and placed him at IIG to train in High Yield Debenture programs under Lars Soderstrom, ex Royal bank employee, but Tony ended up stealing Lars’ contacts and tried unsuccessfully to set up a program on his own. In June 2002, IIG was suddenly closed down after Rath was arrested in London on US charges. After four years, Rath went on the run from an FBI warrant in the U.S. 

Another Deal from: 2001 to? 
Dobbs states that he contacted and paid about 30,000 to a private investigator in Canada to try to track down TCI’s money, and that this man was a retired fraud investigator from an Ontario police department. It has been noted that this investigator went by the name of Mickey Savich; however, Dobbs never confirms nor denies the full name of the investigator, but does call him Mick in several correspondence letters to investors. Dobbs states that he later provided Mick with 100,000 of investor fund money for an investment he came across while trying to hunt down some of the TCI principals in Singapore, and that his program was supposed to pay out around 23 million. The first payment of 5 million was supposedly received at his bank in Canada and within hours the Canadian government took all of it towards taxes on future earnings. 
Our records indicate there is no current or retired fraud investigator by the name of Mickey Savich with any Ontario Police Department. Ontario Licence Registry turns up nobody by the name of Mickey, or a Savich that holds a Private Investigator Licence. The Canadian Government or the Canada Revenue Agency (CRA) does not seize taxes on future earnings. There is no known Federal Tax Court pending, nor any resolved case from previous years that involves the seizure of 5 million in all of Canada on case law files. CRA officials state, “We don’t seize money on future earnings.” As far as this Singapore deals goes, “there has been no single individual who has earned 23million on a 100,000 investment in Singapore,” says Ashley Burton, a retired official and International Investment analyst with Barclays bank. 
Prime Bank instrument schemes like Bank Debentures, Bank Guarantees, High-Yield Trading, Guaranteed Bank Notes or Fund backed Securities have attracted significant international attention. Individuals and organizations have lost billions of dollars worldwide. They may go by different names, but the perpetrators purport to have access to a secret trading program where the net effects are a total financial devastation to investors.” These investments never exist,” Ashley Burton states. 
Usually the perpetrators are unlicensed; operate privately owned investment companies that are not regulated under the Securities Act, and are not compelled under any laws to open up their books unless court ordered or official investigations are made. “They can lie like hell until the cows come home, and nothing can be done about it,” Burton says helplessly. 
When it comes to investments, “always deal with publically licenced agents that are sponsored by regulated Public Corporations who have to show their balance sheets every year,” is Burton’s advice with his overview about this story. 
“One of my best running schemes, when I was an active con-man, were these Bank Debentures, but more important was the fact investors were willing to send their fund to off-shore banks, that’s what stops investigators in their tracks. There is no money trail to prove something otherwise.” J.M is a retired Bank Trader con artist who asks to remain anonymous.

NEWS LETTER| FROM THE MAN’S DEN| BY MICHAEL LALIBERTE |FEBURARY 2014 This email address is being protected from spambots. You need JavaScript enabled to view it.