Recovering Losses caused by Investment Misconduct

Ponzi Scheme Case Comes To Head in Ohio

The case for a real estate Ponzi scheme based in Utah is being tried partly in Toledo, OH, bringing the reality of investment fraud to our state's doorstep.

The US Securities and Exchange Commission (SEC) is bringing this securities fraud lawsuit against Art Intellect Inc. and its three principals, Patrick Brody, Laura Roser, and Gregory Wood. The company is based in Salt Lake City, Utah.

The suit alleges that Art Intellect, which operates under the name of Mason Hill, took in $2.5 million from over 75 different investors. This took the form of a Ponzi scheme that began in 2009 and continued until recently.

The company claimed to be buying real estate in Ohio, Florida, and Kansas to be improved and rented. In exchange for a $20,000 investment, the schemers supposedly promised investors returns of 10-30 percent with monthly payments of $650 to $1,000.

However, as the SEC claims, the money that Mason Hill took in barely went to buying properties at all. Instead, it was being used to keep the company afloat and pay for lavish personal vacations for Brody and Roser. Later investments were brought in to cover payouts to the original investors.

Because the scheme involved a few properties in Ohio, part of the federal case is being tried in Toledo. SEC is seeking fines against the fraudulent company and the repayment of illegal profits.

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