Retired businessman loses savings in bank scam

MILWAUKEE (WITI) -- A retired businessman invested his savings of $3 million to a promising capital venture - only to find out that it was a sham.The man, who was in his late 80s, died before he saw the return of all his money.

"He was told his original investment was guaranteed," said U.S. Postal Inspector, Tammy Mayle. "It was supposed to double his returns within 90 days."

Unfortunately for the man, he fell victim to a scam artist claiming to be an international financier.

"At the highest level of banking in Europe," explained Attorney John Brewster. "There were - unbeknownst to most people - bank notes traded between systems.

The artist claimed he would use the man's money to buy bank notes at half their face value and sell them to other banks across the globe -- for almost twice as much. The con artist guaranteed the retired man he would not lose any money.

A short time after investing his $3 million, the victim received $1 million back from the sham, to void the man of any suspicions. Mayle said they gave back this money to "gain the trust of the victim."

However, over the next two years, the perpetrators of the scam began to dodge the victim's requests for the rest of the money. They kept coming up with excuses as to why his investment hadn't doubled.

According to Mayle, the money was never invested anywhere. Instead, the con artist spent the remaining $2 million purchasing opulent objects, such as a $500,000 luxury RV.

"It never left the fraudster's bank account," Mayle said. "He was living off the money."

The victim of the fraud was devastated - the $2 million had been earmarked as a donation to his church.

"He was incredulous that anyone would take advantage of him this way," Brewster said.

The two scam artists in this case were ultimately caught and pleaded guilty. They will spend approximately two to three years in prison for this offense. Unfortunately, however, the victim died before the case was finished. According to Wayle, the victim's wife wrote a letter to the judge that said he was never able to use the investment for his church and that "he died of a broken heart."

Here are some tips for avoiding similar scams: