Two jailed in alleged Ponzi scheme

Two people who solicited investors for an alleged Las Vegas-based Ponzi scheme were jailed Wednesday for contempt.

Michael and Denyse Anderson will remain in jail until their overseas assets held in a trust in the Cook Islands are returned to the United States, U.S. District Judge Lloyd George ordered. The couple's domestic assets have been ordered frozen.

The Andersons headed a San Diego company, Financial Growth Consultants, which solicited investors for Las Vegas-based Affordable Media LLC, which did business as the Sterling Group. The Sterling Group sold $5,000 units of broadcast advertising time touting impulse items. Investors were told they could recoup up to 50 percent gains on their investments.

But early this year complaints began to surface that investors were not getting their money back, which led to numerous lawsuits from private investors.

The Federal Trade Commission filed suit against the Sterling Group, Financial Growth Consultants and others related to the operation. George found the Andersons in contempt earlier this month and ordered them to account for their overseas moneys or face jail time.

But the Andersons claimed the FTC suit triggered a "duress" clause in the trust, which rendered them unable to order the money back to the United States. Their attorney, Michael McCloskey, said Wednesday the Andersons were trying to appoint new trustees so the money could be returned.

George said the Andersons should have complied with the order long before Wednesday, saying he believed the couple lacked trustworthiness and integrity.

"I believe the bottom line is they are in control of this trust," George said.

Leaving the courtroom after the Andersons were taken into custody, McCloskey said he did not know what his next step would be.

The FTC is hoping to recover an estimated $1.3 million it believes the Andersons hold overseas. If the case is ultimately resolved in the FTC's favor, it hopes to redistribute the money to jilted investors.

Meanwhile, the head of the Sterling Group, Eric Stein, remains a fugitive. He is wanted on state fraud and securities violations. Ina Bell and Phil Balestrieri have been arrested on those same charges and await a Sept. 9 preliminary hearing in state court.

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