Texas man bilked investors for $22M in drowsy drivers ponzi scheme

So where did $22 million in missing investment money go in eleven years? Investors in a ponzi scheme hatched by Richmond, Texas businessman, Frederick Alan Voight, are wondering just that. Early investors have been pouring money ($114 million, total) into Voight’s DayStar Funding LP since 2004 for the development of a Driver Alertness Detection System.  According to this article, DayStar agrees to makes amends, but admits no guilt:

Frederick Alan Voight, 58, and his firm DayStar Funding LP agreed to pay civil penalties and return alleged illegal gains in sums to be set by a federal judge, the SEC said. He also agreed to asset freezes, but neither admitted nor denied wrongdoing.

Voight, of Richmond, Texas, was accused of having raised at least $114.1 million from 300 investors since 2004 through fraudulent note offerings he claimed would fund research at public companies, including InterCore Inc, where he was a vice president and director.

The SEC said this included $13.8 million raised since October from at least 260 U.S. investors to fund InterCore’s installation of its Driver Alertness Detection System, or DADS, technology in “several million trucks and buses.”

It said Voight promised annual returns of up to 42 percent from the DADS offering, but that “all $13.8 million is gone.” The SEC said $22 million overall is unaccounted for.

“Mr. Voight is looking forward to having all the facts come out and putting this matter behind him as soon as possible,” Brent Baker, a lawyer for Voight, told Reuters. He also said the $22 million number will “go down substantially.”

That $22 million “unaccounted for”? I’m willing to bet it’s in an untouchable offshore account. Good luck getting your hands on that money, SEC. No wonder Voight agreed to those “asset freezes”; he has plenty of chump change to tide him over. Wonder if he’s made vacation plans in the Bahamas…?

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