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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 0 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

New Year’s Eve: How to follow Michigan fireworks laws, keep pets safe

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New Year’s Eve: How to follow Michigan fireworks laws, keep pets safe


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New Year’s Eve is one of five holidays when Michigan state law permits the use of fireworks. From 11 a.m. Dec. 31 until 1 a.m. on Jan. 1, consumer-grade fireworks, like sparklers, smoke bombs, Roman candles, and aerials, which launch into the air to explode, can be set off on personal property.

Some places in Michigan have less restrictive local ordinances that allow more time and days for fireworks, but state law requires fireworks to be allowed after 11 a.m. on certain holidays. Violations of local ordinances can result in a $1,000 civil fine.

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Lighting fireworks on public property — including sidewalks, schools, and churches — or another person’s property without permission is punishable by a fine of up to $500.

Aerial fireworks, including Roman candles, cannot be used at Michigan state parks, trails, and harbors. However, smaller fireworks like sparklers and fountains are permitted, per the Michigan Department of Natural Resources. Selling fireworks to a minor is illegal in Michigan.

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“When fire-related incidents involve consumer, low impact, or illegal fireworks resulting in property damage, injury or death of another person, individuals are subject to a misdemeanor or felony punishable by imprisonment of not more than five years and fines of up to $10,000 or both,” according to the state’s website.

Fireworks can be a nightmare for pets. Here are some tips for keeping your pets safe and reducing their anxiety this New Year’s Eve:

  • Don’t leave your animals alone if they have trouble with loud noises.
  • Keep pets indoors in a safe room or cage to avoid injury from running into dangerous items in your home.
  • Close all curtains and windows to reduce noises from outside.
  • Tire pets out with exercise, like walks or playtime, earlier in the day.
  • Provide pets with enrichment activities, like a frozen lick mat with treats.
  • Get your pet soundproof earmuffs or play soothing sounds on a sound machine to muffle noise.



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Michigan superintendent accused of smoking weed with colleague, having gun on school grounds

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Michigan superintendent accused of smoking weed with colleague, having gun on school grounds


A Michigan school superintendent was ousted from her position for allegedly getting high with a colleague on school grounds and then driving off in her car – where police found a hunting rifle stashed in the backseat.  

Hollie Stange, who headed Fitzgerald Public Schools in Warren, is accused of getting behind the wheel after police spotted her smoking marijuana with the district’s food services director for several minutes in a parked car 1,000 feet from school grounds, according to the Macomb County Prosecutor’s Office. 

Police arrested Stange and Amanda Carroll, both 38, after the pair left in separate vehicles on Dec. 20, and were found allegedly driving “under the influence.”

Fitzgerald Public Schools superintendent Hollie Stange and Amanda Carroll were both arrested and charged after they were caught smoking weed on school campus and then getting behind the wheels of their car. Click on Detroit

“This is deeply concerning and violates the trust our community places in these school administrators,” Macomb County Prosecutor Peter J. Lucido said.

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“Driving under the influence and possessing drugs near school grounds is not only unlawful but also puts the safety of our children at risk. As individuals entrusted with the well-being of Macomb County’s children, we will take all necessary legal steps to ensure accountability.”

Police found a rifle wrapped in a blanket in the backseat of Stange’s car, along with a 50-gram bag of marijuana in her purse, WWJ reported.

A 6-year-old was inside Carroll’s vehicle when police pulled her over. 

Carroll was also in possession of more than 25 grams of weed, the outlet reported. 

Prosecutors believe Stange had the gun in her car while she was on school grounds. 

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Both women were placed on leave, pending an internal review, on Sunday following a unanimous vote by the Fitzgerald School Board.

“The Fitzgerald Public Schools Board of Education today voted unanimously to place District Superintendent Stange and Amanda Carroll on leave effective immediately pending our internal review and the ongoing criminal investigation,” board president Julia Yokel said in a Facebook post. 


School officials arrested Friday
A Michigan school superintendent was ousted from her position for allegedly getting high with a colleague on school grounds and then driving off in her car – where police found a hunting rifle stashed in the backseat. Google Maps

“The school district is cooperating with local law enforcement and will continue to do so.”

Stange is charged with possession of marijuana on school grounds, possession of a weapon in a weapon free zone and operating a motor vehicle while intoxicated, prosecutors said. 

Charges against Carroll include possession of marijuana on school grounds, operating a motor vehicle while intoxicated second offense and operating a motor vehicle while intoxicated with an occupant less than 16 years old. 

Both women were arraigned on Dec. 21 in Warren District Court, and their bond was set at $5,000 each.

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Both are barred from entering school grounds unless otherwise directed, no uses of alcohol or drugs with random testing twice a week and limited contact with each other, prosecutors said.

Stange is also restricted from using any firearms.

“My client is a dedicated educator and administrator with two decades of services, a mother of two young children herself, and is presumed innocent under the law,” William Barnwell, defense attorney for Stange, told the Detroit Free Press.

“They have to prove she knew the weapon was in the vehicle, they have to prove distance (from school grounds) and they have to prove impairment.”

They will appear in court next on Jan. 2.

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Will Mikey Keene be Michigan’s Week 1 starting quarterback in 2025?

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Will Mikey Keene be Michigan’s Week 1 starting quarterback in 2025?


Welcome to SB Nation Reacts, a survey of fans across the NCAA. Throughout the year we ask questions of the most plugged-in Michigan Wolverines fans and fans across the country. Sign up here to participate in the weekly emailed surveys.

Michigan now has a veteran quarterback in the fold for the 2025 season. On Monday afternoon, Fresno State transfer QB Mikey Keene committed to the Wolverines.

Keene had a 70.5 completion percentage in 2024 with 2,892 yards with 18 touchdowns and 11 interceptions at Fresno State. Keene was at Central Florida for his first two years and is familiar with Michigan’s new offensive coordinator, Chip Lindsey. Lindsey was Central Florida’s offensive coordinator in 2022 while Keene was at UCF. Keene fared well in ‘22 with Lindsey when he saw the field, throwing for 647 yards, six touchdowns and one interception with a 72.3 completion rate.

Does Keene’s veteran presence and familiarity in Chip Lindsey’s scheme give him the edge to ultimately be named Michigan’s starting quarterback in Week 1 against New Mexico next season? Or will the 2025 No. 1 overall prospect and No. 1 QB Bryce Underwood prove to be ready to roll right out of the gate? Vote below.

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Whether Keene winds up starting or not he was brought in to compete with Underwood and receive a shot at the starting position in 2025. Keene, who stands 5-foot-11, 200 pounds, will be entering his fifth collegiate season in 2025 and has amassed 8,245 passing yards, 65 touchdowns and 28 interceptions in his career with a 67.8 completion percentage.



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