Posted by Edgebrook Ed on June 24, 2009 at 08:41:05:
Duped in alleged Ponzi scheme, looking for work
By Christopher Placek | Daily Herald Staff
Published: 6/24/2009 12:02 AM
Fred Samp made sure to get his front-row seat at the Schaumburg High School auditorium Tuesday afternoon to hear about job opportunities with the Social Security Administration.
The 61-year-old Deer Park resident is now looking for work after saying he lost thousands to an alleged Ponzi scheme run by David Hernandez, who was taken into custody Monday. Samp was one of 100 investors in 12 states who, according to a Securities and Exchange Commission complaint against Hernandez, was promised high-dividend returns from Hernandez's supposed payday-loan investments.
"I was doing so well I could pay my bills and many others'. Today I have nothing, and I'm here looking for a job," Samp said.
He said he was receiving five-figure returns monthly after investing in Hernandez's NextStep Financial in early 2008, but started asking questions when the checks stopped coming early this year.
Samp said he and another investor went to Hernandez's office, only to be told "all sorts of excuses," including that Hernandez had a heart attack.
That's when the two investors approached the FBI and SEC, who filed suit against Hernandez last week alleging that he shifted investor funds to Spectrum Entertainment, another Hernandez venture that provided funding for Mike North's startup Internet sports talk station, ChicagoSportsWebio.com.
The SEC alleges Hernandez also used investors' money for personal use, including $318,000 to pay off a mortgage at his Downers Grove home.
Ironically, Samp said he hasn't been able to make his last two mortgage payments and will likely lose his home.
Samp said he had three accounts with Hernandez: one for his kids' college fund, another for his mother-in-law and a personal account for he and his wife.
"We put our faith and trust in him. I considered him angel of God," Samp said.
Before, Samp said he was able to donate part of what he received to the pantry at South Barrington's Willow Creek Church, where he volunteers. He also recalls one time when he gave a needy person downtown a $100 gift certificate for a restaurant.
But yesterday, Samp joined about 550 others seeking jobs at the Schaumburg event, sponsored by the Senior Job Club of Schaumburg, Palatine and Wheeling townships. Organizers said more than 100 people had to be turned away because of the auditorium capacity.
The two-hour event was held to inform those interested about what the Social Security Administration is looking for, and how to apply for jobs through the administration's Web site ssa.gov/careers.
The administration is looking to fill 6,000 jobs nationwide, though it's unclear how many will be at the agency's 25 Chicago-area offices. John Marshall, the SSA Chicago-area work incentive coordinator, said 23 new employees were hired locally in March, and new hires would be taken through Sept. 30.