. >> but still to come on abc 7 news -- a $27 million ponzi scheme and how did this man do it? a live report when we come back. plus steve is back with more details on the storm heading our way, this busy travel week. >> she's one of the few women in the nation to own a >> a local man is accused by federal authorities of operating a multimillion dollar ponzi scheme. among his victims -- local charities. we are live in northwest washington with more on this. richard? >> these court documents outline a sad but fascinating story. a $27 million ponzi scheme that money all gone the focus of a federal investigation. >> do a web search of garfield taylor -- >> they said that he would be so greedy and just criminal. >> and they found among other entries this profile of a d. crrment business with assets of up to $1 million a year. he was very polished. he came across as very savvy. but this court filing by the s.e.c. paints a very different picture. >> he would pay a different picture. >> of a man living large in this million dollar rockville mansion who master-minded a $27 million ponz

scheme so now this is an eighteen billion dollar ponzi scheme but when it was taken public of course the first day pop is critical and this is engineer by offering a very few number of shares and that all in the after market the banks who underwrite this offering are buying in the aftermarket which is technically illegal but it's something called laddering they do it anyway so laddering of i.p.o.'s means that you can engineer a price appreciation there's very little stock in the float you can't sell it short because all the stock sell by the underwriters and what you do with that pop of course is you pay off all the litigants in your lawsuits so all the law people are still going the underwriters maybe it's goldman sachs or j.p. morgan anyone who's got a lawsuit pending they use the i.p.o. stock as payment as hush money to pay them off they use it to take care of any errors in their error account which they've accumulated by doing illicit illegal deals over the years and they. churn that a few times and they use it basically a currency to favor political courage because of course in

. >>> local businesses, some charities out millions, investigators say duped by a major ponzi scheme. >> rain today and more on the way. the fox 5 storm force is breaking down the trouble for your thanksgiving travel on this very foggy evening. >>> we'll begin tonight with a super failure on capitol hill. good evening. i'm brian bolter. >> i'm shawn yancy. the committee in charge of cutting more than a trillion dollars from budget did not chop a dime. now the trickle down effect is sure to hit your wallet. fox 5's laura evans starts us off from the newsroom. >> 12 members of the bipartisan committee admit they were not able to come to an agreement. i literally a lot of talk and no action -- it's literally a lot of talk and no action and the finger pointing that started months ago continues. >> reporter: after two months of closed door negotiations the six republicans and democrats on the super committee have given up. president obama is reissuing the call for compromise to lawmakers on both sides of the aisle. >> there will nobody easy off ramps on this one. we need to keep the pressu

talking about a ponzi scheme that targeted charities, churches, and people's pensions here in the d.c. area. armando trull has details on the alleged scam headed by a man who was living large in north bethesda. >> this is the office on wisconsin avenue where garfield taylor allegedly ran a ponzi scheme from 2005 to 2010. >> they pitched middle class investors in the greater d.c. area by selling them on a conservative investment. he said that this investment would bring in up to 20%. >> accuses taylor of lying to clients by misrepresenting his investment success. forging letters of recommendation from trusted brokerage firms in order to woo new victims. >> in fact, he was just bringing in new investors and taking their money and giving it to older investors. >> 130 clients were allegedly bilked. some lost all the equity if their homes and their life savings. this while taylor lived high on the hog in this multimillion dollar mansion in north bethesda with a pool and plenty of security cameras. neither taylor nor his codefendants, which included family members and friends answered the d

tonight, we're learning about a ponzi scheme that affected dozens of people in our area. the lawyer for one of the victims speaks out at the bottom of the hour. >>> plus, a crime alert in maryland where an elderly man was beaten with a cane. tonight, the victim speaks out as the search continues. >>> and another flash mob robbery. we go one-on-one with the police chief to find out what is being done to catch the cullp pret rites. >>> a lot of rain this evening and where it's going. we have a chance of thunderstorms around here. that is coming up. first a look at the forecast.  >> police are searching for a thief who beat a 92-year-old man with a cane. the elderly victim was in the hallway of his apartment building in annapolis friday night when he was attacked and john henrehan has more. >> reporter: this was not a robbery with roughing up a very elderly person but a beating. we'll show you the injuries. it happened friday evening in annapolis phil is 92 years old and normamy walks with the help of the cane. he's doing without the cane lately because it was taken away f

officials even calling it a ponzi scheme.ring at stubbornly high levels, a lot of people are wondering should they go back to school? katrina spencer is one of them. she puts that question to cnn education contributor steve perry in a special "ask dr. perry" edition of "perry's principles." >> reporter:. >> hello, dr. perry. i want to go back to school. why should i go back to school if i can't find a job in the field i'm in now? >> well, you go to school because you want to improve your marketability. not just for a particular job, but for your career. education is an investment that takes time sometimes to give you the return that you want. this is something that you're interested in, then you got to pursue it because you won't be happy until you truly fulfill that interest. and if education is essential to that interest, then you got to go back to school. take the time, do it in the way in which you can and which you can afford, be responsible about it, but pursue it. when you look at your life's prospects, they will only

you have nothing left but from this is a very typical of the end of a ponzi scheme because as people pull their money out of the system stacey that's the new money that you need to keep a ponzi scheme going so people are going to pull out of the ponzi scheme then we really do have a big problem this could be much bigger than lehman brothers because it really would attack the kernel of the systemic system that's now at risk due to just too much fraud and the c.m.a. group as we've been reporting for quite some time one of the most fraudulent regulators in the world that's the way the system works and it's benefited people and sold now it's killing people ok back well the reason why he says it's very unfathomable is that the c.m.e. group would typically provide the liquidity in this case when a group member like m.f. global group goes bankrupt normally the c.m.e. group would provide the liquidity and make sure that the clients the funds were still flowing and they didn't in this case in the speculation is that if they packed and that global then others were behind it and that it couldn'

that it was a ponzi scheme it's a well documented ponzi scheme everyone in the financial press and on wall street knows it's a ponzi scheme but going into the i.p.o. window they have this first day pop that's manufactured by wall street as bribe money as currency money to pay off litigants to pay off politicians we know that insider trading in congress is legal so they give that to the congressmen of the trying to curry favor to regulation and then they afterwards within a week or so as insiders get out of this piece of garbage that went public the stock of course collapses now in the case the group on its down well below its i.p.o. price and this whole i.p.o. market has been completely undermined by the interest of the kleptocrats on wall street now this is interesting because the big one the mother of load of this whole window of i.p.o.'s facebook has yet to go public and this of course is goldman sachs your maker if they can't get that piece of garbage out of the i.p.o. window there's going to be a lot of unhappy goldman sachs partners they've already broken the law at goldman sach

the wife of ponzi schemer bernie madoff breaks her silence on "60 minutes."ng would make me suspect anything. >> do you believe her? we'll tell you what we think. "the five" starts right now. ♪ ♪ >> kimberly: right now to our top story. herman cain answering harsh allegations. reports say the g.o.p. presidential candidate was inappropriate with two unnamed female employees. this is back in the '90s when head of the national restaurant association. cain addressed the situation today. >> i never sexually harassed anyone. yes, i was falsely accused while i was at the national restaurant association. i say "falsely" because it turned out after the investigation to be baseless. if the restaurant association did a settlement, i am not, i wasn't aware of it. i hope it wasn'tf much, because nothing happened. if that was a settlement, it was handled by some of the other officers that worked for me and the association. >> a denial by unnamed employees. what is your take on this? ia he is shad -- >> andrea: he is shadow boxing. there are no sources in front of us and we

here's how the alleged ponzi scheme would work. the group would collect the money ensuring investors they were covered by a, quote, reserve account and the group would invest in high-risk options and suffer massive losses. they would use the new money coming in to pay off earlier investors and themselves. the s.e.c. along the group used high- pressure tactics to get investors on board with often disastrous results. >> we along that the -- mr. taylor and his associates were trying to persuade people with some measure of pressure to take out home equity lines on their homes, to take their retirement money and invest, and we saw in these kinds of circumstances some tremendous losses. >> reporter: both companies shut down last year. this is a civil action. the sec is looking to get an injunction. they're also trying to reclaim money for the alleged victims and they will ask the court for penalties and fines, which could be in the millions. >>> pricey protest. the outcome pie d.c. movement has cost taxpayers nearly $900,000 so far. that

>> coming up, a second pansyse scheme taunt dunn coin the district -- ponzi scheme taken down in the district.ict. >>> and just in time for the wht will lace, a marine surprise his parented, returns home, and then gets a surprise of his own.n. >>> it's almost time for the cowboys and redskins to renew the rivalry. we have you covered on the big game, all morning, and off the wall in the sunday sports section. >> i toe you're going to be into the game -- i know you're going' to be in the game. >> also, we are going to following a car jacking in tyson's corner in the middle of the day. and more protestors arrested in dc, but first, let's get a chece of tthe weather, a bit chilly yesterday, but a warmer start today, at least it seems so too me. a bit milder.. let's check in with gwen.th >> it is going to get warmer, the difference will be the sunshine there is less sun today and more clouds. i'll show you the clouds rolling in, and also you can see a little bit of wet weather on thh radar.rada over areas of the allegheny,lleg middleton, seeing some light rain. we're going to be keeping

federal regulators say was a ponzi scheme ran by a maryland man. more on the devastating impact it's having on so many people. >> now federal investigators say garfield taylor has victims here in germantown and all over the d.c. metro area. green belt, upper marlboro, arlington, d.c., the securities and exchange commission says the victims of garfield, taylor and his company are all over. court documents say some invested their entire retirement savings. at least one had told employees about being hesitant to invest because of quote, bernie madoff and other publicized scams. >> any time you have someone come to you and they lost thousands of dollars, it's heartbreaking and to find out that it's not one person, but dozens or hundreds, it's shattering. it's madoff on a smaller scale. >> ray mckenzie represented two victims. >> educated well to do people who were taken for a ride. >> call it is a ponzi scheme. taylor promised low risk investing, but instead committed fraud. d.c. nonprofit, hill crest children's center lost $8 million. half its endowme

market capitalist system they perceive the problem to be that the additional layers of an enormous ponzi scheme is missing that the government will supply because the private sector is too broke to provide that next layer of a ponzi scheme this will result in further market those location and house prices will never find a point of equilibrium that would be equivalent to a free market system and cameron clearly is pandering to his constituency to try to stay in office because everything else he touches turns to a complete joke he's got the reverse midas touch well listen to well another article on this. story first time buyers could get government backed ninety five percent mortgages so listen to his arguments out goes free market capitalism that the market should determine what the price is and listen to the airy fairy middle class or lovie class sort of targeted language it's not just about the economy it's also about people's hopes and dreams you always remember that moment if you've done it when you get that key when you walk into your first flat it's a magic moment it's a moment i w

. >>> hollywood takes on the world's largest ponzi scheme. the oscar winning actor stepping inside the mind of bernie madoff. >> he is accused of posing as the utility worker and murdering a bay area publicist. the surprise deal that could save the suspect from the death penalty. >> fed up with the "occupy" movement? how oakland businesses are taking a stand against the protestors. been working through the night to fix a broken crude oil pipeline the pipe broke at the concord naval weapons station and it's creating a nasty smell >>> hazmat crews have been working through the night to fix an oil pipeline that broke at the concord navy weapons. kristy seifkin is on the phone from the scene. what can you tell us? how's it smell, i guess, is the big question? >> reporter: well, you know, our noses actually led the way to the scene. we were following the gps and we knew immediately we were at the scene where the leak was. still a very strong smell this morning. it smells a lot like sulphur and this is in fact what tipped residents off to the fact

. >>> we are learning more about a multimillion dollar ponzi scheme that the feds say happened right here in the district. securities and exchange commission has charged garfield m. taylor and his company jib ron walters anterior asset management on with is wis avenue with running a ponzi scheme. he and his company are accused of defrauding more than $27 million from approximately 130 investors. that includes churches and nonprofits that lost millions. we tried to get a response from taylor but no one responded to our knocks on the door of his million dollar home in montgomery county. >>> the ac has fallen at the university of maryland. -- the ax has fallen at the university of maryland. we know which sports programs will be cut from the roster. wisdom martin has more. >> reporter: by june, eight of maryland's 27 sports teams will no longer exist. maryland president dr. wallace loh says it was one of most painful and heart-wrenching decisions he has ever made. >> today is a day for me of enormous sadness because we will be saying good-bye to some of the member of the maryland athleti

madoff went to prison on july 14th, 2009 to begin serving 150 years for masterminding the biggest ponzi scheme in history. two years later members of the family are finally speaking out. joining me is catherine hooper, andrew madoff's fiancee and the author of "truth and consequences, life inside the madoff family." how are you reacting to all the he action? how do you think the interviews you've done so far is all going down? >> well, certainly, i expected the book to make quite a big splash. i mean, this is a story that people have been avidly following since it broke in 2008. people have been waiting to hear from the family. >> catherine, i mean, for you, it's obviously -- it's a difficult situation. i'm aware that, for example, you're the only person who is going to be personally profiting from this book. now there are many people saying, hang on a second, how can you be allowed to profit from such horrendous crimes? what do you say to that? >> i understand that completely. the fact of the matter is andrew, because of his legal situation, and i, we can't get married. we likely never

them soft hundred million dollars or so then extract of that out of the company and of course the ponzi scheme cole collapsed he stole money in the guise of if of course he used to be running goldman sachs and we want to like the suppression of school thieving now sipek i want to go over this for the audience here is a private government sponsored company that sure is brokerage accounts for up to five hundred thousand dollars in securities with one hundred thousand dollars for cash in case. brokerage firm because last well sipek covers losses in stocks and bonds however it doesn't cover commodity futures contracts unless to find a specific property under certain conditions right under certain conditions i mean the difference between stocks bonds and commodities and futures contracts is now virtually impossible to distinguish because they've all blended into hybrid securities and hybrid trading done on dark exchanges so now simply can say well we technically don't cover that because by definition these securities that we do cover it don't fulfill our our particular definition and your re

full tilt fought back saying this isn't a ponzi scheme.e doj said when they shut the company down was, you owe american players $150 million, and we looked at your books and you've got $60 million and we look at what the doj says you've been paying out to owners. something's not right here. interesting, aun the online sites in the u.s. were shut don april 15th, black friday. then a number of them. allowed to operate overseas. full tilt poker itself hasn't been able to operate at all. unlike the other sites, the department of justice says not only is what you're doing in the u.s. by operating online poker illegal, but we think you're operateding a ponzi scheme. we think this doesn't smell right. again, the company says time and time again we're not. paying close attention to see if there's a prench company settlement which could result in the u.s. players getting their money back. they'll have to fight the department of gist is and that could take a long time. >> good luck with that. poppy harlow, thank you. >>> and coming home for the holi