Did business grad bilk UM workers in Ponzi scheme? — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily

Did business grad bilk UM workers in Ponzi scheme?

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Andres Pimstein, a graduate of the University of Miami (UM) School of Business, didn’t venture far from his alma mater before putting all his hard-earned business savvy to use.

He is accused of luring dozens of university employees into investing in what turned out to be a $30 million Ponzi scheme. The FBI, which is investigating the case, believes Pimstein recruited as many as three dozen current and former UM employees to invest, promising returns of 18%.

A Ponzi scheme is an investment pyramid scam in which con men constantly recruit new victims, whose “invested” funds are used to pay off those who bought in early. Pimstein’s UM pyramid collapsed this year when he could no longer pay investors.

Pimstein held meetings with his “investors” in UM conference rooms, and persuaded UM employees to use their computers to control the bank accounts used to launder the money, an investigator told CNN.

Several senior university officials, including Alan Weber, former director of contract administration, were taken in by the scheme.

According to CNN, when asked if he was a con man, Pimstein responded, “I don’t have an answer to that.” 

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