Quote from: elux on September 23, 2012, 05:32:34 PM

Just lining up more pieces:

http://www.scribd.com/doc/106409576/Indictment-USA-v-Vleisides-Houston-Emmett-Cloud-Walther

This one is interesting:

Quote

RESTITUTION:Pursuant to 18 U.S.C. § 3663A(c)(3), restitution is not ordered because (1) the number of identifiable victims is so large as to make restitution impracticable [3663A(c)(3)(A)]; and (2) determining complex issues of fact related to the cause or amount of the victim's losses would complicate or prolong the sentencing process to a degree that the need to provide restitution to any victim is outweighed by the burden on the sentencing process [3663A(c)(3)(B)].

http://www.scribd.com/doc/106409553/Judgment-probation-order

(snip)

Quote

Victims of the scheme were directed to send their money to mail drops in Ireland, The Netherlands and other locations, where participants in the scheme returned the money to the United States. From domestic bank accounts controlled by Henry Walther and others, some of the money was sent back to victims who were told that they were receiving winnings, even though the winnings were far less than the amount of money sent in by victims. The rest of the money was either spent to further the scheme or to enrich the defendants. Investigators estimate that victims lost approximately $20 million during the scheme, which ran for more than 15 years until it was shut down by federal agents in July 2006.

Yes. This answers my earlier question:

Quote from: niko on September 20, 2012, 06:34:12 PM

Quote from: Jutarul on September 20, 2012, 05:47:56 PM

Quote from: niko on September 20, 2012, 04:57:41 PM

Quote from: crazy_rabbit on September 20, 2012, 04:52:49 PM

Quote from: dust on September 20, 2012, 04:47:32 PM

Inaba stated that that preorders were not used to fund development and that outside investments (VC, etc) were taken.

Ah. Hmm, there goes that theory I guess! :-)

Unless the "VC" actually means his own savings from a scam...?

A likely theory. It's a good way to launder some money I guess. You take pre-orders, but finance the production with dirty money. This way all the scam money is hidden as working capital and eventually extracted as clean profits.

I cannot figure it out, but hopefully some can: how much of the alleged 25M has been recovered?

The answer seems to be: almost no money was recovered. Makes me wonder about the origin of "VC" investment, and how it brought Sonny to be in charge of BFL.