Formulating Insurance Agency Owner Arrested

Brown Arrests Mastermind of Multi-Million Dollar Ponzi Scheme

Sacramento-Attorney General Edmund G. Brown Jr. today announced the arrest of William Arthur Sassman II who “looted” the life savings of dozens of investors to bankroll his lavish lifestyle and prop up a multi-million dollar Ponzi scheme.

Sassman, 41, of Sacramento, was arrested at his residence this morning on a total of 100 counts: 43 counts of grand theft, 40 counts of misrepresentation or omission in the sale of a security, 16 counts of first-degree burglary and 1 count of use of a device, scheme, or artifice to defraud in the sale of a security. If convicted, Sassman faces up to 52 years in prison. Sassman is being held in the Sacramento County Jail and bail has been set at $3.2 million.

“William Arthur Sassman solicited millions of dollars from California investors with promises of high returns on business and real estate investments,” Brown said. “In reality, Sassman looted their savings to prop up a Ponzi scheme, so he could buy homes and Ferraris.”

Over the past decade, Sassman used four companies-InTex, LLC; Formulating Insurance Agency (FIA); Formulating Investments (FI); and Systematic Management Services (SMS)-to solicit investments ranging from approximately $10,000 to $500,000 from more than 50 individuals across Northern California and beyond.

Sassman, a licensed insurance agent, convinced investors, many of whom were senior citizens, to shift their savings from IRAs, annuities, life insurance accounts, 401(k)s and certificates of deposit to “high return” investments with his companies. These investments included foreclosed properties and real estate in Georgia, Mare Island and Vallejo; a strip mall in Folsom; commercial property in El Dorado Hills; the production of a laptop computer stand called the “Notefloat” and annuity, stock and foreign currency investments.

However, Sassman made few, if any, of these investments and rarely paid the double to triple digit returns he promised. Instead, Sassman spent investors’ millions financing his lavish lifestyle, including $1.1 million on his American Express card, $300,000 on automobiles, $75,000 at Polo Ralph Lauren and three homes.

The limited funds Sassman invested were channeled into other illegal operations including a “stock trading program” run by a group indicted in federal court earlier this year for running a Ponzi scheme and a European investment scam that promised a 200 percent profit in 45 days or 800 percent annually.

As Sassman burned through investor funds, he paid returns to early investors by using funds from new ones. Investors are still owed close to $4.4 million, and additional losses could reach $3 million.

In September 2009, Sassman and his companies filed for bankruptcy.

Some of Sassman’s Victims

In October 2004, a Sacramento resident invested more than $250,000 in FIA. Sassman promised her a seven percent annual return. Her money was combined with money from other investors for a total of more than $700,000. Of that money, approximately $400,000 was spent on Sassman’s personal expenses, more than $50,000 went to Sassman’s wife, and more than $34,000 was paid in returns to other investors. The victim lost $170,000 of her investment.

In late 2005, Sassman promised a Rancho Cordova woman that if she closed her $78,000 life insurance policy and invested the funds with him, she would receive an 8 percent return on her investment. In early 2009, the victim was diagnosed with cancer and her son took over her finances. Her son contacted Sassman and requested $7,000 from his mother’s investment to help pay for her medical expenses. Sassman promised to send a check, which never arrived. Soon after, the victim’s son contacted Sassman and asked him to return the entire balance of the $78,000 investment. Sassman sent a check for $14,000 that bounced. The victim’s investment was never returned.

In January 2007, a Sacramento couple invested more than $80,000 with Sassman’s company SMS to be invested into real estate and to earn interest. Sassman informed the couple that their money had been used to purchase property, which was undergoing renovation. The couple was unaware that their entire investment had been used to pay other investors.

News Release

# # #

WhoIs Deven Electronics Inc – www.deven-inc.com

The Purpose of This Post Is To ALERT You That The Job You Are About To APPLY For or May Have Applied For or is CONSIDERING APPLYING For Is Scam Alert 1Fraudulent. A LEGITIMATE COMPANY IDENTITY OR AN INDIVIDUAL IDENTITY HAS BEEN STOLEN OR A BOGUS ONE CREATED

These job postings are an attempt to lure you into cashing counterfeit checks and have you wire funds via Western Union or MoneyGram -Essentially You Become A Money or RePackage Mule

Money Mule Explained

Washingtonpost.com by Brian Kerbs

_____________________________________

Dear Applicant,Sorry for late reply, Thanks for applying in our company (Deven Electronics Inc),
we have discovered your resume that you sent us,

you are invited to documentation for “Part Time Customer Data Entry”
(home based) employment offer,

visit our website: http://www.deven-inc.com

This offer will be Valid after review of your Documents (eg.educational certificates etc),

Please check Duties Responsibilities and complete job package attached sheet with this
email .Doc format ( end of this email),

If interested please submit attach application form with required documents by Scan Email,
(Click to download application form and description files End of this Email, MS word format)

Last date of application form submission is 06 September 2009,

(Note: To avoid Disappointments submit form and documents as soon as possible)

with best regards
Egon G. Carl

Branch Manager
Deven Electronics Inc
Auf Den Sandbreiten 17HG
27739 Bremen
Germany.
URL: http://www.deven-inc.com
Email: admin@deven-inc.com
Attachments:
downloadlinkapplication form.doc (58K)
downloadlinkduties and job package.doc (59K)

Hello applicant,We have received your documents and already forwarded to HR,
in case of approval we will inform you,

so we will contact you back after getting any answer from Hr department,
it may take 3-4 days to complete process,

regards
Egon G. Carl
Deven Electronics Inc
http://www.deven-inc.com

3 EMAIL:

Hello applicant,

your application with Deven Electronics Inc was approved and
our head office just issued the confirmation letters and other employment
documents with Employment Agreement,

(Scan copies are attach with this email just for view) original you will get in 1 week
by courier,

kindly read and fill up the Only “Acceptance form” (attached with this email on Word file)
and after signing this from send us back by Scan email in maximum 2 working days,

After receiving this form you will get the all employment documents with agreement by
courier at your home address and you will be Deven Inc’s Part Time Permanent
Employee for 6 months and after this period you can extend agreement for more 6months,

(Note: FILL ONLY ACCEPTANCE FORM NOT AGREEMENT LETTER,
agreement letter you need to sign after getting by courier)

hope to hear from you soon,

regards
egon G. carl

Deven Electronics Inc
http://www.deven-inc.com
admin@deven-inc.com

1. the same email, but the company name is changed… notDachs Electronics Inc
http://www.dachs-inc.com
Damian Electronics Inc
http://www.damian-inc.com
Damon Electronics Inc.
http://www.damon-inc.com
Davey Electronics Inc.
http://www.davey-inc.com
Declan Electronics Inc
http://www.declan-inc.com
but… Denven Electronics…

2. the employment is in U.A.E…????

3. is about Egon G. Carl… not

Ebron G. Caden or Ebron Caden
Egner G. Carsten or Egner Carsten
Eldric G. Carl or Eldric Carl
Eladio G. Carlo
Edsel Carl
Marvin Carl
Edgar G. Carl and so on…

Address lookup

canonical name deven-inc.com.
aliases http://www.deven-inc.com
addresses 68.178.232.100

Domain Whois record

 whois.internic.net with “dom deven-inc.com”…
Domain Name: DEVEN-INC.COM
Registrar: GODADDY.COM, INC.
Whois Server: whois.godaddy.com
Referral URL: http://registrar.godaddy.com
Name Server: NS09.DOMAINCONTROL.COM
Name Server: NS10.DOMAINCONTROL.COM
Status: clientDeleteProhibited
Status: clientRenewProhibited
Status: clientTransferProhibited
Status: clientUpdateProhibited
Updated Date: 31-aug-2009
Creation Date: 31-aug-2009
Expiration Date: 31-aug-2010

Last update of whois database: Tue, 17 Nov 2009 13:07:17 UTC
Queried whois.godaddy.com with “deven-inc.com”…
Registrant:
Deven Inc

Registered through: GoDaddy.com, Inc. (http://www.godaddy.com)
Domain Name: DEVEN-INC.COM

Domain servers in listed order:
NS09.DOMAINCONTROL.COM
NS10.DOMAINCONTROL.COM

For complete domain details go to:

Network Whois record

Queried whois.arin.net with “68.178.232.100”…
OrgName: GoDaddy.com, Inc.
OrgID: GODAD
Address: 14455 N Hayden Road
Address: Suite 226
City: Scottsdale
StateProv: AZ
PostalCode: 85260
Country: US

NetRange: 68.178.128.0 – 68.178.255.255
CIDR: 68.178.128.0/17
NetName: GO-DADDY-SOFTWARE-INC
NetHandle: NET-68-178-128-0-1
Parent: NET-68-0-0-0-0
NetType: Direct Allocation
NameServer: CNS1.SECURESERVER.NET
NameServer: CNS2.SECURESERVER.NET
NameServer: CNS3.SECURESERVER.NET
Comment:
RegDate: 2005-04-12
Updated: 2007-06-14

OrgAbuseHandle: ABUSE51-ARIN
OrgAbuseName: Abuse Department
OrgAbusePhone: +1-480-624-2505
OrgAbuseEmail: abuse@godaddy.com

OrgNOCHandle: NOC124-ARIN
OrgNOCName: Network Operations Center
OrgNOCPhone: +1-480-505-8809
OrgNOCEmail: noc@godaddy.com

OrgTechHandle: NOC124-ARIN
OrgTechName: Network Operations Center
OrgTechPhone: +1-480-505-8809
OrgTechEmail: noc@godaddy.com

# ARIN WHOIS database, last updated 2009-11-16 20:00

DNS records

name class type data time to live
http://www.deven-inc.com IN CNAME deven-inc.com 3600s (01:00:00)
deven-inc.com IN SOA
server: ns09.domaincontrol.com
email: dns.jomax.net
serial: 2009091900
refresh: 28800
retry: 7200
expire: 604800
minimum ttl: 86400
86400s (1.00:00:00)
deven-inc.com IN A 68.178.232.100 3600s (01:00:00)
deven-inc.com IN NS ns09.domaincontrol.com 3600s (01:00:00)
deven-inc.com IN NS ns10.domaincontrol.com 3600s (01:00:00)
deven-inc.com IN MX
preference: 0
exchange: smtp.secureserver.net
3600s (01:00:00)
deven-inc.com IN MX
preference: 10
exchange: mailstore1.secureserver.net
3600s (01:00:00)
100.232.178.68.in-addr.arpa IN PTR parkwebwin-v01.prod.mesa1.secureserver.net 2630s (00:43:50)

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