Fraudsters Targeted Christians in $21 Million Ponzi Scheme
A former Tennessee state legislator, his wife, and his two sons were convicted of multiple charges for defrauding victims of more than $21 million in a decade-long gold and silver Ponzi scheme. Many of the victims are Christians who were misled into believing the bizarre end-time scheme.
Sentenced were Larry Bates, CEO of First American Monetary Consultants (FAMC); his wife, Kinsey; and his sons, Chuck and Robert. They were found guilty of mail and wire fraud as well as conspiracy that defrauded 360 people of more than $21 million. The scheme primarily targeted Christians and the elderly.
Records show that Bates, a retired bank CEO, held conferences across the U.S. predicting an economic collapse which he called "Mystery Babylon" and emphasized the need to invest in precious metals. He also promoted this through a number of Christian TV and radio programs including the Jim Baker Showplus Jewish Voice.
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Between 2007 and 2013, customers gave more than $87 million to FAMC for the purpose of buying precious metals, but the family diverted the money to their personal accounts. By 2009, the company accumulated $26 million in unfilled orders. More than 45 witnesses testified losing money to FAMC.
Bates established International Radio Network for $4 million which provided listeners with information and advice on politics and the world economy. The rest of the money was used to build a 10,000-square-foot home on 300 acres of property in Middleton and to purchase other commodities.
Bates was convicted on 46 counts of mail and wire fraud, and his wife, Kinsey, was convicted on two counts of wire fraud. His son, Chuck, was convicted with 18 counts of wire fraud, while robert Robert was convicted with three counts of wire fraud and one count of conspiracy. Each count carries a potential sentence of 20 years in prison and a $25,000 fine.
