Newspaper article THE JOURNAL RECORD

Investor Lawsuits Name Senior Executives of Former CFS

Newspaper article THE JOURNAL RECORD

Investor Lawsuits Name Senior Executives of Former CFS

Article excerpt

TULSA (AP) -- Senior executives of the now defunct Commercial Financial Services are named in three lawsuits filed by investors holding more than $700 million in bonds in the debt collection company.

The lawsuits filed in federal court in Tulsa allege fraud by the executives and others. Defendants varied from lawsuit to lawsuit, but all three named former CFS Chairman Bill Bartmann and former Executive Vice President Jay L. Jones. The men were among the company's founders. The company whose purchase of some loans led to the debt collection firm's financial problems was named in two of the lawsuits.

The plaintiffs were described as institutional investors who purchased, own, insured or guaranteed more than $600 million in securities.

One of the complaints described the operation as one of the largest Ponzi schemes in American history.

In a Ponzi scheme, money from later investors is used to pay off the earlier investors and the scam fails when there are no new investors. …

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