The Twin Cities Tyrone Herman Allegedly Defrauded Investors of More Than $19 Million in Small Appliance Resale Scam
On October 10, Tyrone Herman, 55, of St. Anthony, Minnesota, was reportedly found guilty of defrauding at least twenty five investors of more than $19 million, according to documents filed in court. Herman, from 1998 through December 2013, allegedly operated Executive Marketing Group and Ty Herman & Associates, which he purported had working business relationships with manufacturers and wholesalers to whom he could purchase small domestic appliances and other inventory at below-retail market rates. Herman reportedly sold the victims a story that he could then re-sell said inventory in which they had just sunk their hard-earned cash for a whopping profit of 35 percent. Later, the marks were allegedly supposed to receive their money back, with a 30 percent rate of return, all within 90 days of the sale of inventory.
Herman Created False Inventories and Bogus Bank Statements
Herman reportedly concocted false invoices to show victims that had already sold him their inventory, according to documents filed in court. When the victims finally demanded return of their investments, Herman handed over fake bank statements showing that there was plenty of cash in his bank account, but that the pesky Internal Revenue Service had frozen said account, rendering Herman impotent to access the victims’ money. Herman reportedly did repay some investors with Ponzi-type payments, but these were all funds which were not directly related to the sale of inventory.
Investment Fraud Lawyers Investigating
The Peiffer Rosca Wolf securities attorneys often represent investors who lose money as a result of Ponzi schemes or investment fraud. They take most cases of this type on a contingency fee basis and advance the case costs, and only get paid for their fees and costs out of money they recover for their clients.
Investors who believe they lost money as a result of investment fraud or misconduct may contact the securities lawyers at Peiffer Rosca Wolf, Alan Rosca or Joe Peiffer, for a free, no-obligation evaluation of their recovery options, at 888-998-0520.