Three PTA Moms Made 14 Million Dollars
I think we have all bought an entire pan of brownies in hopes of helping the PTA. It seems like every week there's another candy sale, or bake sale . . . or illegal Ponzi scheme?
According to Philly.com three PTA moms have been arrested for running a Ponzi scheme that earned more than 14 million dollars at Neil Armstrong Elementary School in suburban Los Angeles.
The women got their start in 2008, when they began asking other PTA members to invest in their new business . . . which they claimed was selling dairy products to Disneyland. (???)
More than 40 people invested . . . some from as far away as Salt Lake City . . . giving the ladies anywhere from $5,000 to $208,000 in cash.
And authorities said that the key to the whole scheme was that the women seemed trustworthy because they were PTA members.
The school eventually caught wind of the scam and kicked the women out of the PTA. But not before they'd spent about $2.5 million on vacations, new cars, and casino gambling trips.
About $10 million has been recovered since the women were arrested and charged with 22 felonies. The school says that no actual PTA funds were used in their scam.