From Diamonds to Dust
Posted by | Posted in Credit Report | Posted on 01-10-2010
Confucius said, “Better a diamond with a flaw than a pebble without.” The courts disagree. In the mid- to late-1980s Harvey Diamond and his then-wife Marilyn, were national talk show celebrities as they promoted their nonfiction book on the finer points of food combining, “Fit for Life.” Even the couple’s young son, Beau, had two guest appearances on the wildly popular “Merv Griffin Show”.Fast forward twenty years or so; the senior Diamond is now suffering from both dwindling book royalties and ill health, ostensibly resulting from Agent Orange exposure. Beau, who had remained steadfastly loyal to his father, had been studying foreign currency trading. In an article on www.heraldtribune.com, by Michael Pollick, “’In his pitch to investors that started in the summer of 2006, Beau Diamond said that he had spent the previous nine years perfecting his safe, highly profitable method of foreign currency trading. He had learned his lessons, some of them at great expense, using his family’s money, he told investors.’”As the younger Diamond became increasingly proficient plying his trade, he offered outside investors five percent per month return on their investment. Compounded over a year, that rate turns $100,000 into an astounding $180,000! In 2006, Beau created Diamond Ventures, with both father and son signing papers listing themselves as managing partners. Shortly thereafter, Diamond Ventures LLC attracted $37 million from 200 investors. Although the company’s investment waters began getting murky in 2007, in 2008 the dynamic duo of Michael and Beau were driving the highest-end sports cars, living in palatial mansions and flying friends around on chartered jet planes. Wait for it…In August 2010, a bankruptcy court trustee sued Harvey Diamond, seeking every dollar the investment scheme paid him. He invested $100,000 in Diamond Ventures and got back $275,000. In addition, son Beau has been convicted in Tampa, Florida, on 18 felony counts, including money laundering and turning a foreign currency trading venture into a Ponzi scheme. In November, Poppa Diamond will bear witness as his 32-year-old son receives what may be a very long prison sentence (remember Bernard Madoff?). I don’t know if Confucius said it but, “If it seems too good to be true, it probably is.”If you are unemployed or underemployed, have mountains of credit card debt or if your investments took a beating during the recession, filing for Chapter 7 or Chapter 13 personal bankruptcy protection could be your best answer. For more information on the mechanisms of Chapter 7 and Chapter 13 personal bankruptcy, please go to www.legalhelpers.com or call toll-free today at 800-260-1402 to speak with a qualified bankruptcy attorney. A Legal Helpers lawyer will be on your side.
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