By Allan Lengel ticklethewire.com
NASCAR is often associated with the roar of the crowd and the smell of burning rubber. In Los Angeles, it may be associated with the roar of angry investors and the smell of a scandalous investment.
Federal authorities in Los Angeles charged Eliott Jay Dresher, 63, of Chatsworth, Calif., with allegedly taking at least $10 million from about 50 investors, including family and friends, to finance a wholesale business to distribute NASCAR merchandise to big box stores like Costco.
In return, investors were to get returns of 20 to 25 percent every six months, according to the U.S. Attorney’s Office.
Turns out, authorities said, there was no such business, and investor were paid money from what turned out to be a Ponzi scheme.
Authorities say the Ponzi scheme collapsed last year, as did many, when he was unable to make payments to investors.
The U.S. Attorney’s Office said a federal magistrate judge on Monday determined he was a flight risk and ordered him detained pending his Jan. 26 trial.
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