Tipster Busted For Fraudulent Tips

[Mulboyne]

Yomiuri: Man makes 1.25 billion yen in horse race tip scam
The president of a software retailer apparently illegally raised about 1.25 billion yen by enticing people to invest in a money-making scheme that uses software that predicts the results of horse races, it has been learned. He reportedly promised investors high dividends with a guaranteed principal, but almost all the dividend payments were suspended in May, and investors have not had their capital returned. Eighty-three individuals or corporations in at least 12 prefectures are said to have been taken in by the scheme...Starting around April 2006, the 56-year-old president persuaded housewives, business owners and other people in various locations, including Shibuya Ward, Tokyo; Yokohama; and Nagasaki to join...He promised investors monthly dividends of between 5 percent and 15 percent and guaranteed they would receive their principal back. He also rapidly bolstered the number of investors by paying introduction bonuses of between 1 percent and 2 percent a month to those who persuaded new investors to join the scheme..."I knew what I was doing was against the law," the president admitted to The Yomiuri Shimbun. "My funds ran dry because of tips that were off the mark and the dividend payments"...more...