Ponzi Scheme Victims Seek Help from Iraqi Government

DEARBORN, Mich., July 1 /PRNewswire/ -- The plaintiffs in a federal racketeering lawsuit who claim that they are victims of a massive Ponzi scheme plan to contact the Iraqi government to help them recover their money.  The plaintiffs, who have not identified themselves in the suit because of claimed fears of reprisals, allege that they were victims of a Ponzi scheme which targeted Iraqi-Americans.  

According to the plaintiffs' lawsuit, the defendants "exploited cultural taboos forbidding dishonesty and financial self dealing with tribal brothers and sisters ... to dupe thousands of Iraqi-Americans into investing in Iraqi and Middle-Eastern projects."  The lawsuit goes on to allege that the investments were fraudulent and that the defendants used the money to pay themselves or earlier investors.

Now the plaintiffs plan to ask the Iraqi government to help them recover their money.  "Most of the defendants have ties to Iraq; some of them have business dealings in Iraq and others have fled to Iraq as a result of this lawsuit," said David Honigman, one of the attorneys for the plaintiffs.  "It is important to send the message that these individuals cannot avoid justice by hiding themselves or their assets in Iraq.  We think the Iraqi government will agree," Honigman continued.

To that end, Honigman has written a letter to Iraqi prime minister, Nouri al-Malaki.  The letter, according to Honigman, informs the prime minister that the defendants have defrauded American and Iraqi citizens, and are now trying to hide in Iraq.  Honigman intends to deliver the letter to the Iraqi Consulate in Southfield.  "They have assured me that the letter will then be delivered through official channels to Prime Minister Malaki," Honigman said.

"This Ponzi scheme defrauded not only Iraqi-Americans, but also their relatives still living in Iraq.  It is important that the Iraqi people and the Iraqi government know what is going on," said David Hansma, another attorney representing the plaintiffs.  Honigman and Hansma are already working with US authorities in pursing the alleged Ponzi schemers.  They hope that this letter will lead to similar cooperation with Iraqi authorities.  According to Honigman, the plaintiffs "intend to pursue the wrongdoers in whatever jurisdiction is necessary to recover the victims' money."

SOURCE Mantese Honigman Rossman and Williamson, P.C.