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Dozens of Michigan investors cheated out of money in $100 million Ponzi scheme

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Dozens of Michigan investors cheated out of money in $100 million Ponzi scheme


DETROIT – Dozens of Southeast Michigan investors were cheated out of tens of millions of dollars as part of a $100 million Ponzi scheme, federal authorities said.

QYU Holdings

Last year, federal officials launched an investigation into a self-proclaimed investment company called QYU Holdings.

The company is operated by Darren Anthony Robinson, 53, a United States citizen working out of Panama.

QYU Holdings claimed to be a professional trading firm that could generate incredibly high returns for investors. One document said a $100,000 investment in 2014 would have grown to more than $2 million by 2021.

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QYU Holdings told potential investors that the company hadn’t had a single net losing monthly return from 2014 through 2021.

“QYU’s marketing materials represented that its ‘strength in trading, or QYU’s edge, is built on our exceptional understanding and analysis of the nuances of the US economy and our expert skill in dealing with financial markets,’” a criminal complaint (unsealed Tuesday, June 27, 2023) reads.

The company said it operated out of Panama and the Cayman Islands and did not charge a management fee. QYU Holdings would earn 30% of profits as long as investors reached a certain profit threshold from trading activity, according to the company.

Michigan investors

In March 2023, a QYU Holdings investor from Southeast Michigan told federal authorities that he had invested more than $1 million with the company since 2019.

Throughout the course of the investigation, officials said they identified dozens of apparent QYU Holdings investors from Southeast Michigan. Collectively, they invested tens of millions of dollars into the company, the criminal complaint says.

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Many of those investments were made in the last five years and involved wire transfers from Southeast Michigan to to QYU Holdings bank accounts in other states, officials said.

Ponzi scheme

Investigators said their initial findings suggested QYU Holdings was running a Ponzi scheme.

Bank records revealed newer deposits from investors were the primary source of payments made to other investors.

There were no obvious deposits or withdrawals from trading accounts, according to authorities.

Officials found significant fund transfers to people affiliated with QYU Holdings, including millions of dollars going to Robinson.

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One of those transfers sent $800,000 to Robinson so he could buy property in the United Arab Emirates, court records show.

Robinson interview

Robinson spoke to law enforcement on June 20 and admitted that the claims made to investors were false, according to officials.

He said a small amount of investor money was traded in the global foreign currency exchange market, but not nearly their full investments.

Robinson created fake FOREX trading data and provided false account statements to investors, officials said.

He said he caused investors to invest $100 million with QYU Holdings — including a high concentration of people from the Detroit area.

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Other investors were from Canada, elsewhere in the United States, and several other countries, the criminal complaint says.

“Robinson admitted that the vast majority of the $100 million that was raised from QYU investors was not used for trading activity, even though the investors had been told that their money would be used for trading,” the complaint reads. “Instead, investor funds were used to pay distributions to other investors, pay QYU’s business expenses, compensate QYU’s client managers and employees, and fund Robinson’s lifestyle.”

Officials said Robinson’s interview confirmed that QYU Holdings was simply a “massive Ponzi scheme.”

Charge

Robinson was charged in the criminal complaint with committing wire fraud.

He appeared in federal court Tuesday in Detroit.

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“The complaint alleges a brazen investment fraud that victimized investors around the world,” U.S. Attorney Dawn Ison said.

“This defendant allegedly orchestrated a large-scale, multimillion dollar Ponzi scheme with victims across the globe,” said James Tarasca, special agent in charge of the FBI’s Detroit field office. “Investment fraud can be crippling for its victims, and the FBI is committed to identifying and working with anyone impacted by this scheme.”

Robinson faces up to 20 years in prison, if convicted.

Authorities have identified several QYU Holdings investors. Anyone who was victimized by this Ponzi scheme can reach the FBI by clicking here.

Copyright 2023 by WDIV ClickOnDetroit – All rights reserved.

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Michigan

Michigan state parks offering fireworks-free camping

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Michigan state parks offering fireworks-free camping


LANSING, Mich. (WILX) -Some state parks offer fireworks-free camping options for those needing a quieter Independence Day.

Sleepy Hollow State Park is just one of many state parks that has been named a safe haven for veterans over the Fourth of July celebration weekend, as they will not allow fireworks in the park.

“Having a fireworks-free Fourth of July celebration, especially at our DNR parks, is really important to give veterans and those with loud noise and sudden sound-triggering PTSD space to celebrate with their family in a safe, quiet environment,” said Christyn Herman with the Michigan Veteran Affairs Agency.

There are a little over 4,000 veterans in Clinton County and another 11,000 in Ingham County. Sleepy Hollow State Park is just one of eleven different state parks that will be fireworks-free zones.

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“They can sound like explosions, fireworks can sound like gunfire, they can sound like many things, but it’s helpful to have these quiet spaces so they’re in a controlled area that can help them not be triggered,” Herman said.

Even when removed from a stressful situation like war, similar sounds like fireworks can trigger intense feelings such as fear, stress, anger, or sadness.

“Fourth of July used to be my favorite holiday, but it’s basically been taken over by a trauma response that I haven’t gotten control over yet,” Afghanistan veteran Hunter Garcia said.

If you or someone you know is a military veteran and is suffering from PTSD, visit the Fireworks Free Fourth webpage.

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Record high travel in Michigan ahead of July 4th

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Record high travel in Michigan ahead of July 4th


LANSING, Mich. (WILX) – You can expect plenty of company as you head to your holiday destination.

AAA predicts a record 71 million people across the country will travel this weekend A record high number of travelers are also expected to hit the roads here in Michigan.

That number, 2.6 million Michiganders expected to travel for Independence Day. This is up from 2.3 million in 2023. And speaking of highs, gas in the state is also up in the state,

According to AAA gas prices are up 16 cents higher from last week. You could pay on average $55 for a full 15-gallon tank of gas. Once you hit the road, Michigan’s Department of Transportation is pausing construction and removing lane restrictions on 60% of projects. Travelers say even so, they’re still expecting slight delays.

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“It’s about an hour and fifteen minutes I’m anticipating a little bit of traffic but super excited,” said Bree Minor who’s traveling to Indiana.

“We always anticipate traffic when going up north especially since were usually commuting on Friday’s. But we’re definitely expecting some traffic and to take it slow with closures and things like that. I’m coming from Kalamazoo so i know how bad it is over there right now, so I’m kind of anticipating the same thing,” said Morgan Gillies who’s traveling to Gladwin County.

Before you hit the road, you’ll want to check your tires, battery, and fluids. Prepare a safety kit just in case.

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While Michigan was sleeping, a budget was unveiled, passed – City Pulse

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While Michigan was sleeping,  a budget was unveiled, passed – City Pulse


By Kyle Melinn

You might not have caught the irony of the Michigan Senate passing a proclaimed expansion of the state’s open record law the same night it passed the most secretive budget in modern history, but I did.

Last week, the Senate spiked the football on bills (which aren’t going anywhere in the state House) that would create a bureaucracy designed to reject or heavily redact whatever open records request you might have for the state Legislature or the governor.

Today, you can request financial documents from the House and Senate under their internal rules but little else. Under these bills, you will be able to request financial documents from the Legislature, but not much more outside of a legislator’s public calendar.

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Don’t fret over the feeble expansion, though. House members won’t pass it anyway. They have re-elections to win.

I only mention it because it creates the aforementioned irony: The same Senate stayed up until 5 a.m. to pass an $82.5 billion state budget for Oct. 1 to Sept. 30, 2025, that literally nobody with a normal sleep pattern read.

That’s because 1,519 pages of spending didn’t become a public document until five minutes after midnight June 27. At 12:05 a.m, a just-for-show committee met to unveil a public spending measure crafted with literally as much openness as the old redistricting process. 

The committee’s clerk, when asked to explain what were in these 1,519 pages, said, “Due to the lateness of the hour, I’m going to keep this brief.” He proceeded to utter a couple of numbers to a room of about 10 people. A motion was made to pass the document. A vote was taken. The chair pounded the gavel.

Mid-Michigan legislators Angela Witwer and Sarah Anthony, who spent the last few months concocting the whole thing with the governor’s budget office, a few other lawmakers and a bunch of staff scattered before too many questions were asked.

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Between 12:05 a.m. and 5 a.m., the full House and Senate passed the budget with light debate. One of the Legislature’s 72 Republicans voted for it. 

Viola! A “bipartisan” budget was passed! While you were sleeping, no less! 

There was no need to look at the spending analyses because unless you’re a nocturnal creature with the sleep habits of a possum, you couldn’t have read it anyway.

That’s your state government working for you in 2024.

Between January and June this year, House Speaker Joe Tate was a broken record on the chamber’s only priority for 2024:  the budget. Tate talked of little else. Last year, the House passed a budget, too, along with a truckload of other policy priorities. This year, it was only the budget.

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There wasn’t anything special about this year’s budget. The Constitution requires it, just like the calendar requires Thanksgiving and the Fourth of July.

Michigan government didn’t have a bunch of extra money, nor was the state broke. The only difference is 2024 is this is an election year, and year and Democrats will struggle to keep a majority 56 House seats, especially with a barely functional 81-year-old as their presidential nominee.

So, to recap, the House unveiled and passed its professed No. 1, No. 2 and No. 3 priorities for the ENTIRE YEAR while most normal human beings were asleep. 

More commotion might have been made over this example of bad government had the budget been terribly interesting, but it wasn’t. 

Back in February, the governor said she wanted: 

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A 2.5% foundation allowance increase to public schools. 

Universal 4-year-old preschool. 

$1,000 rebates for all new automobiles purchased

  a Family Caregiver Tax credit of $5,000.

She got none of the above. 

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Instead, she got the schools and teachers paying less into their retirement, which the school community panned because the reductions weren’t made permanent.

She also got a few hundred thousand dollars left on the balance sheet she can spend this fall on presumed economic development projects.

Don’t ask which ones. We’ll all find out after the deal is cut and bills are passed. 

During daylight hours, if we’re lucky.

(Email Kyle Melinn of the Capitol news service MIRS at melinnky@gmail.com.)

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