This was posted on the Avanti Chat Group - thought some would here would be interested:
* * Time-Share Scam
CHICAGO (AP) -- Federal authorities contend a 57-year-old man took in more than 400 million dollars in a time-share scheme.
F-B-I agents in Florida arrested Michael E-Kelly last week. He's accused of scamming investors across the country -- including at least three in the Chicago area -- by getting them to buy into properties in Mexico.
The investors were promised an annual return of up to eleven percent, but authorities allege that Kelly eventually spent the money on a lavish lifestyle that included a private plane and a large yacht.
Kelly is in custody in Florida, but federal officials say he'll be brought to Chicago to face federal mail fraud charges. * * *
and here's a link to the reported scam:
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Best regards, Richard Morris Renton, WA
1964 Avanti R-1 #5367
1990 Avanti 4-door #78
I talked to Chuck Beck in April '03, when he was working for "Avanti", in Georgia. They were marketing his 550 Porsche and Lister replicas. He was working on a chassis for the Avanti; and developing the Porsche 904 replica, which has been a long time project. He said heart attacks had slowed him down some, (probably not when behind the wheel). I'm pretty sure he left Avanti soon after. He told me that he hadn't been impressed by Stude's Avanti in the '60's, (Did I realize it had a Lark chassis? ). He had a 409 Chevy, back then, which was a fast car. That was wrecked, and its engine installed in an old Jag, which became a very fast car! Pictures from his 65th birthday, in 2002, are still up:
When we were in Reedsville this past year an Avanti owner saw my computer had a Cingular Internet Card. He asked if he could use it, and he "googled" the aforementioned name. It seems there are a lot of files on line about these alleged scams, some even ent as far as calling it a Ponzy Scam.
What I found most interesting was that many guys came by the booth when this was up on the screen and were excited about the Federal Warrants. One owner almost leaped for joy, but was a bit too heavy. Seems there are those who have had nthing but trouble getting any warranty work done.
Interesting that he was "captured" in Florida, as the way I heard it, he knew that he could not cross the boarder as they were looking for him. My speculation is that somebody called the cops.
I warned everybody on this board about an evil con man that was operating in Cancun, Mexico in January 2003. He was masquerading as an important businessman. A man who could turn around failing businesses and make them flourish with his magic touch. A big time resort operator and real estate developer. Little Avanti David against the Goliath GM.
This is what JOHN POULOS posted on this board at the behest of Kelly about that on January 28, 2003:
January 28, 2003, Cancun, Mexico Various web site chat rooms and e-mail 'trails' this week have provided
malicious and untrue information regarding Michael E. Kelly and his business practices. Accusations have been made that Mr. Kelly is under investigation for fraud, violation of securities laws and other questionable activities in a number of states in the US as well as internationally. This is completely untrue. Further, Mr. Kelly is not aware of any investigation by the FBI. It is true that in 1997, Yucatan Investments was a funding company for the Baccara Resort in Cancun, Mexico. The property was funded through nine month notes. Nine month notes are promissory notes, often sold by insurance agents, financial planners, and "tax-preparers,". As of May
2000, all nine month notes utilized for the investment of the Baccara were paid to their original investors with no outstanding promissory notes withheld. Additionally, any mention of individuals under investigation for fraud is purely coincidental and does not relate directly to Michael E. Kelly
or his companies. The Panamanian Leasing company employs independent contractors to represent and sell time share. These independent contractors often represent more than one product or service and may come under investigation for such products and services with no relation to Mr. Kelly or his companies. Michael Kelly's strong principles and family values that translate to his entire staff and stellar resort collection are a tribute to his success. Because of his devotion to the importance of family unity, the
Avalon Resorts family has grown to more than 1,500 people, ensuring the
prosperity of his company by creating the finest vacation experience for guests.
Nobody on this board believed me and I paid a high cost personally for being the one to raise the flag about this piece of human trash called Michael E. Kelly. Then some of you started to get the idea about Kelly around the time that he began to sabotage your attempts to buy the cars that you love on E-bay by withdrawing his high bids at the last minute forcing at least some of you to pay more for certain cars and others of you to get conned out of a car because you couldn't outbid his higher but later withdrawn bids. You were the lucky ones.
Other people lost their life savings. Other people had to forego their retirement and return to work because their nest egg was stolen from them by a con man, a flim flam man from Indiana. He has caused so many people so much pain and misery.
You guys are all knowledeable about the car business. Did you really think Kelly moved Avanti to Cancun because the labor costs were low there?
John Poulos was so proud that he had Kelly's phone number in Cancun and that he could be the oracle for this board to Kelly's ear. John wrote this on January 28, 2003 to this board:
"I just got off the phone with Mike.It appears that he has a disgruntled ex employee making trouble. I'll post a press release with Mike's response shortly."
We'll John, do you have a direct line to Kelly in Federal lockup? I can only say to you, JOHN POULOS, that I hope that you went down to Cancun and bought one of Kelly's timeshares. In fact I hope that you bought one of Kelly's condominiums in the, as yet unbuilt, Puerto Cancun. I'll bet you did!! LOL Happy vacations John!
Oh yeah, I almost forgot! Guess how the F.B.I. got the goods on Kelly to arrest him? They traced 2.5 million dollars of money taken from the investment scams back to Avanti's operating expenses.
Don't beleive me this time? Here are some links you can follow to get the whole scoop.
This one is real interesting and its got sound and pictures too:
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This one is quoting the F.B.I. (yes the same F.B.I. that Kelly said he didn't know was investigating him. I guess they forgot to tell him. I sure knew it.):
Yep, I did post Mike's response as he asked me to 4 years ago, and again when the latest press reports surfaced. If he wants to reply to the latest post, I'd post that too.
Is he being held as a flight risk? He's probably at the villa in Cancun on the veranda talking to his lawyer over a Pin~a Colada... (or at his Florida mansion if they won't let him leave the country)
One question I have for you Mike.... Why the sudden 'I told you so'? Where have you been every day/week/month/year since you found out all this information? Not a slam. Just curious..... Jeff
Hell, Here on the NG we know more than the FBI does ... You going into the eyewitness protection program? (I hear they are getting some nice new housing units down in Mexico ..) Jeff
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