Skip to Content
Results

$1.25 Million Jury Verdict For Seniors Who Were Scammed In Ponzi Scheme

April 15, 2018

After a week long trial, a Wilson County jury returned a verdict for $1.25 million to two elderly investors who were defrauded by a Johnston County man named James L. “Rip” Rainey as a part of a widespread investment scam. Our clients were among hundreds of investors who had purchased unregistered securities marketed at the time as “business opportunities” in the sale and leaseback of mobile billboards.

As the investments were marketed, investors would purchase mobile billboards in units of $20,000 from Mobile Billboards of America, Inc. (MBA), who would then pay a monthly lease from advertising revenues. At the end of a seven-year-period, MBA would repurchase each billboard unit for the original price paid, so that the investment appeared as a method of preserving principal and making seven years of competitive interest. In reality, the sale and leaseback program was a Ponzi scheme, where the lease payments came from investors’ own money.

The program was represented to investors as a “business opportunity” so that MBA and its sales agents could circumvent state and federal securities law. After regulators pursued MBA, they discovered that millions of dollars of retirees’ savings had already disappeared. Because the defendant has hidden assets, the victims of this scam have not yet been able to collect on the jury’s verdict.

(Cases or matters referenced do not represent the law firm’s entire record. Each case is unique and must be evaluated on its owns merits. The outcome of a particular case cannot be predicated upon a lawyer’s or a law firm’s past results. Unless otherwise specified, each of the following matters was contested on liability and/or damages, the opposing parties were represented, the matters involved complex legal and/or factual issues, and the law firm was successful in collecting the amounts stated. Case summaries are from 2000 through the present.)

TALK TO US NOW
FOR FREE
No Win, No Fee
Martin & Jones, PLLC logo

“Forest, once again, my family and I thank you for obtaining another settlement on behalf of my Father. It’s almost uncanny that these checks seem to come at very opportune times. This one comes as we are expecting our fourth grandchild. It will provide her some sound footing towards her future college education, plus help Mom and Dad with the medical expenses. Sometimes, I think my Dad is helping you guys with this. Maybe so. Anyway, thank you again for your hard work.”

Contact Our North Carolina Personal Injury Law Firm

for a Consultation for Your Accident or Medical Malpractice Claim

Call us at 800-662-1234
TALK TO US NOW
FOR FREE
No Win, No Fee

The law firm you choose makes a difference. If you are the victim of an accident or an illness that someone else caused, the North Carolina personal injury law firm of Martin & Jones has the depth of experience, skills and sensitivity to make your road to recovery as smooth as possible. Whether you have experience with the legal system or have never hired a medical malpractice or personal injury lawyer before, our attorneys and staff will do our best to answer your questions, provide clear advice and prepare you and your family for what to expect. If you would like more information or to meet with one of our attorneys, please fill out the form below or call us at 800.662.1234.