LOS ANGELES - Three former PTA mothers used their connection with a suburban elementary school to recruit investors in a phony $14 million get-rich-quick scheme, authorities said yesterday.
The alleged Ponzi-style scam lasted more than two years before an irate investor filed a complaint last year....
The alleged swindle started in 2008, when the women told fellow PTA members they had the exclusive right to sell products from a well-known local dairy to Disneyland, Disney hotels, and other small retailers.
They said they needed capital to expand the business and promised returns of up to 100 percent, adding that even if there was no profit, investors would get their money back....
Investments, which had to be made in cash, ranged from $5,000 to $208,000. The 40 investors used their life savings, maxed out credit cards, and took out second mortgages to come up with the money....
The trio belonged to the Neil Armstrong Elementary School PTA in Diamond Bar until school leaders became aware of the complaints and ended their membership.
--more--"
