WASHINGTON (AP) – A Detroit-area man bilked senior citizens and others out of as much as $250 million in a long-running scam that promised profits on lucrative telecommunication contracts with Las Vegas resorts and casinos, U.S. authorities said in court documents filed yesterday.

Edward May, 71, and E-M Management Co. guaranteed returns on companies that purportedly had contracts with Hilton Hotels Corp., MGM Grand Hotel, Tropicana Resort Casino and others, according to documents filed in U.S. District Court for the Eastern District of Michigan. Authorities said that the contracts didn’t exist and that the scheme, dating back to at least 1998, victimized between 500 and 1,200 investors.

“Many of these investors were seniors,” said Peter Chan, assistant regional director in the Securities and Exchange Commission’s Chicago office, which filed a civil lawsuit Tuesday against May and his company. The SEC said that investors were drawn from Michigan, Illinois, Ohio, New York, New Jersey, California and Florida and that the alleged scam pulled in between $74 million and $250 million.

Leave a comment

Your email address will not be published.