Hal Brown of Asheville, NC, Allegedly Ran a $13.5 Million Ponzi Scheme, Purportedly Using Oodles Inc. as a Front; Oodles Allegedly Targeted 23 Victims
Hal H. Brown Jr., 69, of Asheville, NC is facing Ponzi Scheme allegations. Allegedly Brown ran a $13.5 million Ponzi scheme which purportedly targeted 23 victims and used Oodles Inc. as an alleged front, according to statements from a federal grand jury in Charlotte under review by investor rights attorney Alan Rosca.
Investor rights attorney Alan Rosca, of the Rosca Scarlato LLC law firm, is investigating activity related to Hal H. Brown Jr.’s alleged Ponzi scheme. Investors who believe they may have lost money in activity related to Hal H. Brown Jr.’s alleged Ponzi scheme are encouraged to contact attorney Alan Rosca with any useful information or for a free, no obligation discussion about their options.
Brown has been reportedly indicted on counts including securities fraud, wire fraud and money laundering, according to Reports from North Carolina.
Brown is alleged to have convinced multiple victims that the company he purported to control, Oodles Inc., purportedly owned 420 pieces of intellectual property worth hundreds of millions of dollars, according to Reports from the U.S. Department of Justice.
Brown Allegedly Lured Unsuspecting Clients with Purported Claims of Important Connections with Disney, Paramount & Apple, among Other Media Heavyweights
Brown, according to a criminal complaint filed in federal court, allegedly brought in unknowing clients with claims of important relationships with Disney, Paramount and Apple, among other media companies, that he claimed were interested in purchasing the properties owned by Oodles.
Brown also allegedly used a large part of victim money on personal expenses unrelated to alleged Oodles transactions, and to forward the alleged fraud by making payments to existing investors from funds contributed by new investors, the Complaint states.
Said purported payments are the telltale sign of a Ponzi scheme, the Justice Department reports.
In reality, a majority, if not all, of the alleged business activities of Oodles did not look to exist, and Brown allegedly used fraudulent emails and implemented constant excuses to delay repaying clients for their investments after supposedly imminent business deals never came to fruition, the Complaint notes.
An Asheville Resident Known only as V2 Purportedly Received an Email Stating that Disney Allegedly was Set to Purchase Oodles Intellectual Property
An Asheville resident known only as V2 in court documents, for example, allegedly received an email Brown had forwarded that was supposedly written by a woman named Carmen Demarco who purportedly provided information about an allegedly forthcoming purchase of Oodles intellectual property by Disney, the Complaint states.
Demarco purportedly penned the following missive:
Upon closing of the sale of Class B Stock on January 23, 2018, [V2’s] Family will receive the assigned multiple of 3.12 (inclusive of fees) of the one million eight hundred thousand dollar value they have locked via this process.
The January 2018 sale, however, allegedly never took place, and many attempts were made over the following months to explain away any delays and ease their concerns, the Complaint reports.
Such behavior allegedly became standard practice for Brown, the Complaint notes. Brown also allegedly brought in the help of an unknowing forger to misrepresent flows of cash, the Complaint notes.
Another alleged victim, known only as V1, was allegedly forwarded what appeared to be a screenshot of a First Republic Bank account showing a recent, pending deposit of $846,000,000, the Complaint states.
Brown, however, allegedly hired an associate to produce counterfeit images of bank deposits, and he allegedly told this associate that the forgeries were for his daughter’s DECA Inc., project, according to Court Documents. (DECA is a vocational non-profit organization that prepares students for careers in finance and business management.)
Finally, an FBI indictment claims that Brown allegedly represented himself as the CEO of Oodles, which supposedly owned, produced, and distributed family entertainment shows and movies, FBI Reports note.
Finally, it is important to note that, as of the date of this article, there has not been a finding of liability as to the complaints or allegations mentioned in this article, unless otherwise indicated. Any reader should also read the original sources hyperlinked in this blog for accuracy, including any BrokerCheck report and/or record of any disciplinary or regulatory action. Those sources are incorporated by reference into the text of this blog, and are the governing materials in case of any inconsistencies or typos in this blog.
Securities Lawyer Investigating
The Rosca Scarlato LLC law firm represents investors who lose money as a result of investment-related fraud or misconduct and are currently investigating Hal H. Brown Jr.’s alleged Ponzi scheme. The firm takes most cases of this type on a contingency fee basis and advance the case costs, and only gets paid for their fees and costs out of money recovered for clients. Attorney Alan Rosca, a securities lawyer and adjunct professor of securities regulation, and has represented thousands of victimized investors across the country and around the world in cases ranging from arbitrations to class actions.
Investors who believe they lost money as a result of Hal H. Brown Jr.’s alleged Ponzi scheme may contact attorney Alan Rosca for a free no-obligation evaluation of their recovery options, at 888-998-0530, via email at arosca@rscounsel.law, or through the contact form on this webpage.
