The pathetic saga of the Something for Nothing scheme of Richard Elkinson, common con man and gambling addict continues to unravel, along with the names of those who directed investors to him.
If Jay Fialkow and Jeffrey P. Ross failed to conduct even basic due diligence in this case and failed to notice that they never received earnings statements, is it any wonder Fialkow supported the Fools' Gold of Mashpee Wampanoag Casino Capitalism?
... Jay L. Fialkow was a prominent and politically connected Boston lawyer. He was an assistant attorney general, worked on privatization issues for Governor William Weld and efforts by the Wampanoag tribe to build a casino.
Ross and Fialkow ... said they and their Newton advisory firm, Ross Fialkow Capital Partners, merely introduced people to Elkinson - and only 17 of them at that. Investors were responsible for their own due diligence....
Oh? Kinda like a dating service?
Ross and Fialkow earned $319,000 in commissions from Elkinson...
The first agent to raise money for Elkinson was Richard N. Silverman. He met Elkinson some 20 years ago....
At his house in Framingham, Elkinson showed him an embroidering machine in his garage, Silverman said.
Putting a machine in the garage of a home you don't even own ensures credibility and investments?
“It was the first loan I ever made in my life,’’ Silverman said.
Silverman, now 86, said he introduced 25 to 30 investors to Elkinson. He quit in 2005...
without putting anyone of those 25 to 30 friends or authorities on notice?
Elkinson was arrested at a[n unnamed] Mississippi casino early this month
Failure to conduct the proper due diligence, allows well respected leaders and otherwise smart people to support Ponzi Schemes such as this. Let's not fall for it.
It's time to insist that the Commonwealth conduct an independent cost benefit analysis before enacting any legislation to expand gambling.
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