
Attorney General Edmund G. Brown Jr. has charged a southern California movie producer with 89 felony counts. The A.G. says Mahmoud Karkehabadi (aka Mike Karkeh), 53, owner of Alliance Group Entertainment, orchestrated a "cold and calculated" $9 million Ponzi scheme.
“This con artist sold securities under the guise of a loan to fool investors and try to avoid following the rules," Brown said. "He ran a cold and calculated scam, making promises he never intended to keep and using the funds of new victims to pay off the earlier ones."
The take away from this is clear, invest in things you know about or only with trusted advisors.