Friday, April 24, 2009

Noble Trust Founder Pleads Guilty

Before it was shut down because of $15 million in hidden investment losses,, New Hampshire's Noble Trust Company promised customers 12% a year. Colin Lindsey, Noble's founder, has pleaded guilty to two counts of mail fraud. He could face up to six years in prison.

In addition to trying to keep Noble afloat by paying old customers with cash from new ones, Lindsey may have diverted premiums from the sale of insurance policies.

Lindsey earlier directed a quasi-trust company known as the Children's Community Foundation, "a collection of so-called charitable remainder trusts" marketed to farmers.

Seems like old home week here on the blog. First Sam Israel's Bayou funds, then Leona Helmsley's will (see two preceding posts) and now Noble Trust.

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