Texas cattle rancher Oscar Black, who owned Weeatherford-based OB Cattle, entered a guilty plea in federal district court for mail fraud. He is scheduled to be sentenced in September 2008 and faces up to 20 years in prison.
Black perpetrated a Ponzi scheme, whose victims were mostly Texas investors. He offered "investment opportunities" to his acquaintances, with a "guaranteed" rate of return of 12% annually. As his business was unable to generate such returns, he eventually began using new investors' money to pay earlier investors, creating a typical pyramid scheme.
To further his scheme and raise new funds, Black falsely assured investors that their investment had appreciated, when in fact their money was being used to meet financial obligations to earlier investors. He even generated fictitious monthly account statements that showed how the investments supposedly appreciated.
Black's scheme caught up with him when he became unable to raise new funds, and the pyramid scam collapsed. Individual investors stand to lose up to $3.1 million in Black's OB Cattle scheme.
Chapman & Associates is investigating Oscar Black’s investment fraud and preparing to help aggrieved investors recover their losses. Chapman & Associates often represents, on a contingency fee basis, individuals who have lost their savings in fraudulent investment schemes. If you have lost money in Oscar Black's OB Cattle fraud, please contact us immediately by email at jchapman@jscltd.com, or phone at 866-220-3300.
Friday, May 23, 2008
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