Better Business Bureau officials said they have received numerous inquiries regarding a business operating under The Forex Project and Luis H. Rivas.

The BBB “advises anyone who may have invested in the Forex Project to contact their attorney for advice on what action they may need to take in an effort to recover their money. The investor is also advised to provide their name and information to FBI agent Jim Lannamann at 864-948-1497.

“The Forex Project invested in foreign currency exchange trading. This type investment is a high risk model of trading opportunities.”

The Better Business Bureau offers the following warning signs of fraud to those who are considering foreign investment opportunities also know as forex trading.

“Too Good to be true” claims. Quick and high interest returns on an investment is a red flag.
Offers that predicts or guarantees large profits.
Offers that promise little or no risk.
Pressure to invest funds that you cannot afford to lose. Pressure to use home equity funds is an example.
Unwillingness to provide a performance record.
Reluctance to provide credentials or background information.

Jim Winsett, president of the BBB serving Southeast Tennessee and Northwest Georgia said he advises that prior to purchasing a Forex investment, check whether the company is registered with the Commodity Futures Trading Commission, (www.cftc.gov) or is a member of the National Futures Association (www.nfa.org). You may contact the BBB at 423-266-0396.

Arizona Officials In 1988 Warned That Rivas Would “Take The Money And Run”

Luis H. Rivas when he was arrested in Arizona in 1988 and recently in Chattanooga

ForexPeaceArmy latest forex scam, in partnership with the famous con man Rivas. Investors who handed over more than $31 million to Luis H. Rivas while he was headquartered in Chattanooga for the past year had no idea they were dealing with a slick con man who Arizona officials had figured out back in 1988.

Phoenix, Ariz., prosecutor John R. Evans, at a time Rivas was stealing peanuts compared to his recent run, said Rivas was “an excellent scam artist. He can be very convincing on a variety of subjects. He can take people’s money with no ability to perform on his promises. The man can earn a great deal of money through his words.”

Prosecutor Evans said Rivas “has a tremendous talent for creating false appearances. If he is allowed to use his talent, people’s hard-earned dollars and false hopes will fill his coffers.

“The defendant has used his talent since 1985 in Illinois. He moved to Florida and used his skills until 1988. His crimes in Arizona started in August 1988 and were stopped Nov. 22, 1988. It is time that his crimes were stopped for as long as possible.”

Prosecutor Evans noted that Rivas “already had one period of probation in Florida, which did not change his approach to life.”

Michael L. Goss, Rivas’ probation officer, said, “The defendant certainly appears to exhibit a pattern of fraudulent behavior. Although this writer would certainly agree that the defendant is highly intelligent, he would very likely be very successful if his talents were used legitimately and legally. This writer has great concern for the victims, who suffered significantly not only by the defendant’s actions, but also by their failure to recognize the defendant’s actions as illegal.

“Based on the number of victims in this case as well as the defendant’s prior criminal history, this writer sees no reason that the defendant should be granted leniency in this case.

“Obviously, the defendant was not impacted by his placement on a previous probation grant, but alternatively became involved in a series of offenses of a much greater magnitude than those in which he was previously involved.

“This writer views the defendant as a very dangerous individual in the sense that he is able to talk his way into just about anything.

“It is this writer’s opinion that the defendant preys on individuals who are not well versed regarding certain financial matters and, by the time the victims realize what has happened, the defendant is long gone.”

The probation officer said Rivas told him he had enrolled at the University of Maryland in 1974 and obtained a bachelor’s degree in philosophy and mathematics. A check was made with Amy Elzeldin at the University of Maryland records office. She searched through the university records from 1970-1983, including a check of attendance at an overseas class. No Luis H. Rivas.

John Stahl, the detective assigned to investigate Rivas in Arizona, recommended that Rivas, who was then 35, be sentenced to the maximum term. He said he felt that Rivas “manipulated the victims and misrepresented himself at the outset of the initiation of Golden Dawn Financial.”

The detective said Rivas “never intended to fulfill any terms of his ‘contract’ and his intentions were evidenced by several attempts to vacate his residence, disconnect his phone and leave no forwarding address.”

He described Rivas as “a slick individual who may very well have been a success if he used his knowledge and skills in a legal, legitimate business as the defendant is quite convincing and knowledgeable regarding numerous financial matters.”

Det. Stahl said he felt Rivas “preyed on desperate people.” He cited the fact he had been involved “in similar scenarios in Chicago and Miami.”

He felt that Rivas “has made a practice of misrepresenting himself – fraudulently accepting money from people with no intention of providing any legitimate service and ultimately moving to a different area to start the cycle over again.”

Saying Rivas presented a high risk to continue pulling off scams, he recommended that Rivas be imprisoned for the maximum term.

Authorities in Chicago were also looking for Rivas in 1988 for a scam he pulled off there. He had gone from Chicago to Miami, and he got into similar trouble there.

Rivas was finally nailed after running an operation for just a few months in Arizona and was given a 10-year state prison sentence. Rivas emerged from prison around 1995 and showed up in Chattanooga last year offering investors amazing returns that he promised he would earn through his knack for foreign currency trading.

Rivas is now on the run after suddenly closing the Bonny Oaks office in mid-May and pulling $1.6 million in investor funds out of a Chattanooga bank.

Born in Puerto Rico in 1953, Rivas was raised at Cambridge, Mass., then returned to Puerto Rico when he was 18. His parents, Luis and Anna Rivas, had a stable home and long marriage at Bayamon, Puerto Rico, and none of his siblings got into trouble. Rivas attended the University of Puerto Rico for a couple of years, then enlisted in the Army in October 1973. He went through basic training, then was shipped to Turkey and later West Germany. He suffered “stress syndrome” and was treated at Eisenhower Army Medical Center in Fort Gordon, Ga. He was given an honorable discharge from the Army in May 1977.

While Rivas was in Germany, he began living with a woman named Monica Russell, and they had a daughter who was born in 1977. Ms. Russell and the daughter stayed behind in Germany with her parents after Rivas left.

Rivas was back in Puerto Rico briefly, trying college again “for a weekend.” He told an interviewer, “I was finding it difficult to live there because of the differences in the cultures since I was raised stateside. I’m fluent in Spanish, but I don’t necessarily feel comfortable in the culture.”

Rivas married Brenda Hildred in 1974, and they were divorced two years later after she moved back to England. He met Delia Carponell in Puerto Rico and they married in 1977. They had two daughters, Sara and Alexandria. Delia moved with him to Ledo Beach, Fla. She eventually returned to Puerto Rico.

He met a woman named Holly Feldner while he was with Avon in Chicago, and they were married April 30, 1978. She had a daughter and two sons and they also split up.

While he was in Florida, Rivas was involved in a firm called Sigma Financial, where he would charge consulting fees for financial assistance. Rivas was also in telemarketing sales, selling “original signed lithographs” and teaching people how to collateralize loans. In Chicago, he said he worked as an equity raiser for Paine Webber and at another time was in Avon, overseeing more than 200 sales ladies. Then he set up International Equity Investment Inc. in which authorities said “a woman was used to take messages and give the appearance of large-scale activity. Money was taken from desperate people with promises of hope.” Homeowners who were in the process of foreclosure would pay Rivas a fee to find someone to buy the home and lease it back to the homeowners under a seven-year lease. Rivas “guaranteed” that if the buyer defaulted that he would find another buyer. He took a total of $15,000 from 15 homeowners facing foreclosure until he was stopped by authorities.

After he was arrested in Chicago, Rivas ran to Florida. He married Allison Coffman in Miami. They had a daughter together. Rivas was struggling when he was first in Florida, but later “I had two BMWs. A friend went out with my wife and looked at all kinds of furniture. We had about a hundred thousand dollars worth of furniture.” He had a 4,500-square-foot house with a pool table in Hollywood, Fla. He and Allison “traveled, bought furs, the whole thing.” He was worth about a quarter million dollars at the time.

He and Allison split in 1987 and that October he met Belinda Kay Miller when he advertised for topless dancers. He said he was not in the club business himself, but the owners had offered to pay him a fee if he could find topless dancers with clean records. He moved in with Belinda, who had three children of her own, and they soon decided to move to the Phoenix area of Arizona. They arrived June 21, 1988, and first stayed at the Phoenix Sunrise Motel on East Van Buren and then the Ambassador Suites on Thomas Road at 44th Street. When funds were running low, they moved to the Lazy U Motel at 27th Avenue and Indian School Road.

There he tried a variety of jobs, including the topless dancing recruiting. But he said that didn’t pay because he was unable to find any dancers who didn’t have drug problems or arrest records. Rivas sold vitamins over the phone for awhile. Also, he tried raising money for the Veterans of Foreign Wars, but he said, “It’s very difficult to convince somebody to donate to the Veterans of Foreign Wars when you have two bikers on the floor drunk, fighting over the girl they just hired that morning.”

He hit upon the idea of setting up Golden Dawn Financial and placed an ad in USA Today that brought in a number of customers. For a fee ranging from $100-$700, Rivas was to help those in financial jeopardy or in danger of losing their homes to foreclosure. The clients believed that Rivas was in contact with their lenders, arranging to re-negotiate their loans. Instead, he cashed all their checks and kept changing addresses without leaving forwarding addresses. Several of the clients, as a result, lost their homes.

Paul Anderson said he was one of those who answered the USA Today ad in October 1988. He was told that Rivas could negotiate a $150,000 loan for his business, Thin Layer Coating. He was told to wire $1,762.85 to a Rivas account, which he did on Nov. 1, 1988.
A few days later, Rivas got the money out of the account and moved from 4627 W. Perdue in Glendale, Ariz., to parts unknown. His phone was disconnected.

Phillip Craine also responded to the ad and was told by Rivas that for a $175 advance fee he would get a $30,000 loan. After paying the money, he heard nothing more from Golden Dawn Financial.

Beth Camacho and Pat Schwendemann were told that Rivas could help them with their telemarketing operation, including writing the script. They turned over $1,500 to him, then Rivas moved again.

David Thompson paid Rivas $287.50 for supposedly helping him line up a $40,000 small business loan. He didn’t get his money back or obtain the loan.

Dan Isabelle, who was behind on his house payments, paid Rivas $650 in hopes he could help with a refinancing. After waiting several weeks, Mr. Isabelle found that Rivas had moved on without leaving a forwarding address.

After getting a foreclosure notice, Virginia Stanfield saw the Rivas ad and paid him $525. She got no help from the swindler.

Robin Herrera was also facing foreclosure on her home, and she paid Rivas $650 to intervene with HUD. She later said she felt from the start that Rivas was “underhanded and illegal.” She wound up losing her home.

Luis Hiram Rivas

1985 in Chicago, Ill. Arrested for felony theft by deception. Rivas cashed two checks on a closed account. Met with Illinois investigators to explain problems with his International Equity Investment Inc. Promised to provide the Illinois attorney general with 15 names and addresses as well as make restitution. Fled to Florida and began selling artwork.

1987 (August) in Miami, Fla. Arrested for grand larceny involving an equity skimming scam. Placed on six months probation.

1988 (November) in Phoenix, Ariz. Charged with illegally conducting an enterprise, theft, and fraudulent schemes and artifices.

2007-2008 in Chattanooga, Tn. Accepted over $31 million in investor funds. Skipped out to parts unknown.

Arizona Officials In 1988 Warned That Rivas Would “Take The Money And Run”

Luis H. Rivas when he was arrested in Arizona in 1988 and recently in Chattanooga

ForexPeaceArmy latest forex scam, in partnership with the famous con man Rivas. Investors who handed over more than $31 million to Luis H. Rivas while he was headquartered in Chattanooga for the past year had no idea they were dealing with a slick con man who Arizona officials had figured out back in 1988.

Phoenix, Ariz., prosecutor John R. Evans, at a time Rivas was stealing peanuts compared to his recent run, said Rivas was “an excellent scam artist. He can be very convincing on a variety of subjects. He can take people’s money with no ability to perform on his promises. The man can earn a great deal of money through his words.”

Prosecutor Evans said Rivas “has a tremendous talent for creating false appearances. If he is allowed to use his talent, people’s hard-earned dollars and false hopes will fill his coffers.

“The defendant has used his talent since 1985 in Illinois. He moved to Florida and used his skills until 1988. His crimes in Arizona started in August 1988 and were stopped Nov. 22, 1988. It is time that his crimes were stopped for as long as possible.”

Prosecutor Evans noted that Rivas “already had one period of probation in Florida, which did not change his approach to life.”

Michael L. Goss, Rivas’ probation officer, said, “The defendant certainly appears to exhibit a pattern of fraudulent behavior. Although this writer would certainly agree that the defendant is highly intelligent, he would very likely be very successful if his talents were used legitimately and legally. This writer has great concern for the victims, who suffered significantly not only by the defendant’s actions, but also by their failure to recognize the defendant’s actions as illegal.

“Based on the number of victims in this case as well as the defendant’s prior criminal history, this writer sees no reason that the defendant should be granted leniency in this case.

“Obviously, the defendant was not impacted by his placement on a previous probation grant, but alternatively became involved in a series of offenses of a much greater magnitude than those in which he was previously involved.

“This writer views the defendant as a very dangerous individual in the sense that he is able to talk his way into just about anything.

“It is this writer’s opinion that the defendant preys on individuals who are not well versed regarding certain financial matters and, by the time the victims realize what has happened, the defendant is long gone.”

The probation officer said Rivas told him he had enrolled at the University of Maryland in 1974 and obtained a bachelor’s degree in philosophy and mathematics. A check was made with Amy Elzeldin at the University of Maryland records office. She searched through the university records from 1970-1983, including a check of attendance at an overseas class. No Luis H. Rivas.

John Stahl, the detective assigned to investigate Rivas in Arizona, recommended that Rivas, who was then 35, be sentenced to the maximum term. He said he felt that Rivas “manipulated the victims and misrepresented himself at the outset of the initiation of Golden Dawn Financial.”

The detective said Rivas “never intended to fulfill any terms of his ‘contract’ and his intentions were evidenced by several attempts to vacate his residence, disconnect his phone and leave no forwarding address.”

He described Rivas as “a slick individual who may very well have been a success if he used his knowledge and skills in a legal, legitimate business as the defendant is quite convincing and knowledgeable regarding numerous financial matters.”

Det. Stahl said he felt Rivas “preyed on desperate people.” He cited the fact he had been involved “in similar scenarios in Chicago and Miami.”

He felt that Rivas “has made a practice of misrepresenting himself – fraudulently accepting money from people with no intention of providing any legitimate service and ultimately moving to a different area to start the cycle over again.”

Saying Rivas presented a high risk to continue pulling off scams, he recommended that Rivas be imprisoned for the maximum term.

Authorities in Chicago were also looking for Rivas in 1988 for a scam he pulled off there. He had gone from Chicago to Miami, and he got into similar trouble there.

Rivas was finally nailed after running an operation for just a few months in Arizona and was given a 10-year state prison sentence. Rivas emerged from prison around 1995 and showed up in Chattanooga last year offering investors amazing returns that he promised he would earn through his knack for foreign currency trading.

Rivas is now on the run after suddenly closing the Bonny Oaks office in mid-May and pulling $1.6 million in investor funds out of a Chattanooga bank.

Born in Puerto Rico in 1953, Rivas was raised at Cambridge, Mass., then returned to Puerto Rico when he was 18. His parents, Luis and Anna Rivas, had a stable home and long marriage at Bayamon, Puerto Rico, and none of his siblings got into trouble. Rivas attended the University of Puerto Rico for a couple of years, then enlisted in the Army in October 1973. He went through basic training, then was shipped to Turkey and later West Germany. He suffered “stress syndrome” and was treated at Eisenhower Army Medical Center in Fort Gordon, Ga. He was given an honorable discharge from the Army in May 1977.

While Rivas was in Germany, he began living with a woman named Monica Russell, and they had a daughter who was born in 1977. Ms. Russell and the daughter stayed behind in Germany with her parents after Rivas left.

Rivas was back in Puerto Rico briefly, trying college again “for a weekend.” He told an interviewer, “I was finding it difficult to live there because of the differences in the cultures since I was raised stateside. I’m fluent in Spanish, but I don’t necessarily feel comfortable in the culture.”

Rivas married Brenda Hildred in 1974, and they were divorced two years later after she moved back to England. He met Delia Carponell in Puerto Rico and they married in 1977. They had two daughters, Sara and Alexandria. Delia moved with him to Ledo Beach, Fla. She eventually returned to Puerto Rico.

He met a woman named Holly Feldner while he was with Avon in Chicago, and they were married April 30, 1978. She had a daughter and two sons and they also split up.

While he was in Florida, Rivas was involved in a firm called Sigma Financial, where he would charge consulting fees for financial assistance. Rivas was also in telemarketing sales, selling “original signed lithographs” and teaching people how to collateralize loans. In Chicago, he said he worked as an equity raiser for Paine Webber and at another time was in Avon, overseeing more than 200 sales ladies. Then he set up International Equity Investment Inc. in which authorities said “a woman was used to take messages and give the appearance of large-scale activity. Money was taken from desperate people with promises of hope.” Homeowners who were in the process of foreclosure would pay Rivas a fee to find someone to buy the home and lease it back to the homeowners under a seven-year lease. Rivas “guaranteed” that if the buyer defaulted that he would find another buyer. He took a total of $15,000 from 15 homeowners facing foreclosure until he was stopped by authorities.

After he was arrested in Chicago, Rivas ran to Florida. He married Allison Coffman in Miami. They had a daughter together. Rivas was struggling when he was first in Florida, but later “I had two BMWs. A friend went out with my wife and looked at all kinds of furniture. We had about a hundred thousand dollars worth of furniture.” He had a 4,500-square-foot house with a pool table in Hollywood, Fla. He and Allison “traveled, bought furs, the whole thing.” He was worth about a quarter million dollars at the time.

He and Allison split in 1987 and that October he met Belinda Kay Miller when he advertised for topless dancers. He said he was not in the club business himself, but the owners had offered to pay him a fee if he could find topless dancers with clean records. He moved in with Belinda, who had three children of her own, and they soon decided to move to the Phoenix area of Arizona. They arrived June 21, 1988, and first stayed at the Phoenix Sunrise Motel on East Van Buren and then the Ambassador Suites on Thomas Road at 44th Street. When funds were running low, they moved to the Lazy U Motel at 27th Avenue and Indian School Road.

There he tried a variety of jobs, including the topless dancing recruiting. But he said that didn’t pay because he was unable to find any dancers who didn’t have drug problems or arrest records. Rivas sold vitamins over the phone for awhile. Also, he tried raising money for the Veterans of Foreign Wars, but he said, “It’s very difficult to convince somebody to donate to the Veterans of Foreign Wars when you have two bikers on the floor drunk, fighting over the girl they just hired that morning.”

He hit upon the idea of setting up Golden Dawn Financial and placed an ad in USA Today that brought in a number of customers. For a fee ranging from $100-$700, Rivas was to help those in financial jeopardy or in danger of losing their homes to foreclosure. The clients believed that Rivas was in contact with their lenders, arranging to re-negotiate their loans. Instead, he cashed all their checks and kept changing addresses without leaving forwarding addresses. Several of the clients, as a result, lost their homes.

Paul Anderson said he was one of those who answered the USA Today ad in October 1988. He was told that Rivas could negotiate a $150,000 loan for his business, Thin Layer Coating. He was told to wire $1,762.85 to a Rivas account, which he did on Nov. 1, 1988.
A few days later, Rivas got the money out of the account and moved from 4627 W. Perdue in Glendale, Ariz., to parts unknown. His phone was disconnected.

Phillip Craine also responded to the ad and was told by Rivas that for a $175 advance fee he would get a $30,000 loan. After paying the money, he heard nothing more from Golden Dawn Financial.

Beth Camacho and Pat Schwendemann were told that Rivas could help them with their telemarketing operation, including writing the script. They turned over $1,500 to him, then Rivas moved again.

David Thompson paid Rivas $287.50 for supposedly helping him line up a $40,000 small business loan. He didn’t get his money back or obtain the loan.

Dan Isabelle, who was behind on his house payments, paid Rivas $650 in hopes he could help with a refinancing. After waiting several weeks, Mr. Isabelle found that Rivas had moved on without leaving a forwarding address.

After getting a foreclosure notice, Virginia Stanfield saw the Rivas ad and paid him $525. She got no help from the swindler.

Robin Herrera was also facing foreclosure on her home, and she paid Rivas $650 to intervene with HUD. She later said she felt from the start that Rivas was “underhanded and illegal.” She wound up losing her home.

Luis Hiram Rivas

1985 in Chicago, Ill. Arrested for felony theft by deception. Rivas cashed two checks on a closed account. Met with Illinois investigators to explain problems with his International Equity Investment Inc. Promised to provide the Illinois attorney general with 15 names and addresses as well as make restitution. Fled to Florida and began selling artwork.

1987 (August) in Miami, Fla. Arrested for grand larceny involving an equity skimming scam. Placed on six months probation.

1988 (November) in Phoenix, Ariz. Charged with illegally conducting an enterprise, theft, and fraudulent schemes and artifices.

2007-2008 in Chattanooga, Tn. Accepted over $31 million in investor funds. Skipped out to parts unknown.

Arizona Officials In 1988 Warned That Rivas Would “Take The Money And Run”

Luis H. Rivas when he was arrested in Arizona in 1988 and recently in Chattanooga

ForexPeaceArmy latest forex scam, in partnership with the famous con man Rivas. Investors who handed over more than $31 million to Luis H. Rivas while he was headquartered in Chattanooga for the past year had no idea they were dealing with a slick con man who Arizona officials had figured out back in 1988.

Phoenix, Ariz., prosecutor John R. Evans, at a time Rivas was stealing peanuts compared to his recent run, said Rivas was “an excellent scam artist. He can be very convincing on a variety of subjects. He can take people’s money with no ability to perform on his promises. The man can earn a great deal of money through his words.”

Prosecutor Evans said Rivas “has a tremendous talent for creating false appearances. If he is allowed to use his talent, people’s hard-earned dollars and false hopes will fill his coffers.

“The defendant has used his talent since 1985 in Illinois. He moved to Florida and used his skills until 1988. His crimes in Arizona started in August 1988 and were stopped Nov. 22, 1988. It is time that his crimes were stopped for as long as possible.”

Prosecutor Evans noted that Rivas “already had one period of probation in Florida, which did not change his approach to life.”

Michael L. Goss, Rivas’ probation officer, said, “The defendant certainly appears to exhibit a pattern of fraudulent behavior. Although this writer would certainly agree that the defendant is highly intelligent, he would very likely be very successful if his talents were used legitimately and legally. This writer has great concern for the victims, who suffered significantly not only by the defendant’s actions, but also by their failure to recognize the defendant’s actions as illegal.

“Based on the number of victims in this case as well as the defendant’s prior criminal history, this writer sees no reason that the defendant should be granted leniency in this case.

“Obviously, the defendant was not impacted by his placement on a previous probation grant, but alternatively became involved in a series of offenses of a much greater magnitude than those in which he was previously involved.

“This writer views the defendant as a very dangerous individual in the sense that he is able to talk his way into just about anything.

“It is this writer’s opinion that the defendant preys on individuals who are not well versed regarding certain financial matters and, by the time the victims realize what has happened, the defendant is long gone.”

The probation officer said Rivas told him he had enrolled at the University of Maryland in 1974 and obtained a bachelor’s degree in philosophy and mathematics. A check was made with Amy Elzeldin at the University of Maryland records office. She searched through the university records from 1970-1983, including a check of attendance at an overseas class. No Luis H. Rivas.

John Stahl, the detective assigned to investigate Rivas in Arizona, recommended that Rivas, who was then 35, be sentenced to the maximum term. He said he felt that Rivas “manipulated the victims and misrepresented himself at the outset of the initiation of Golden Dawn Financial.”

The detective said Rivas “never intended to fulfill any terms of his ‘contract’ and his intentions were evidenced by several attempts to vacate his residence, disconnect his phone and leave no forwarding address.”

He described Rivas as “a slick individual who may very well have been a success if he used his knowledge and skills in a legal, legitimate business as the defendant is quite convincing and knowledgeable regarding numerous financial matters.”

Det. Stahl said he felt Rivas “preyed on desperate people.” He cited the fact he had been involved “in similar scenarios in Chicago and Miami.”

He felt that Rivas “has made a practice of misrepresenting himself – fraudulently accepting money from people with no intention of providing any legitimate service and ultimately moving to a different area to start the cycle over again.”

Saying Rivas presented a high risk to continue pulling off scams, he recommended that Rivas be imprisoned for the maximum term.

Authorities in Chicago were also looking for Rivas in 1988 for a scam he pulled off there. He had gone from Chicago to Miami, and he got into similar trouble there.

Rivas was finally nailed after running an operation for just a few months in Arizona and was given a 10-year state prison sentence. Rivas emerged from prison around 1995 and showed up in Chattanooga last year offering investors amazing returns that he promised he would earn through his knack for foreign currency trading.

Rivas is now on the run after suddenly closing the Bonny Oaks office in mid-May and pulling $1.6 million in investor funds out of a Chattanooga bank.

Born in Puerto Rico in 1953, Rivas was raised at Cambridge, Mass., then returned to Puerto Rico when he was 18. His parents, Luis and Anna Rivas, had a stable home and long marriage at Bayamon, Puerto Rico, and none of his siblings got into trouble. Rivas attended the University of Puerto Rico for a couple of years, then enlisted in the Army in October 1973. He went through basic training, then was shipped to Turkey and later West Germany. He suffered “stress syndrome” and was treated at Eisenhower Army Medical Center in Fort Gordon, Ga. He was given an honorable discharge from the Army in May 1977.

While Rivas was in Germany, he began living with a woman named Monica Russell, and they had a daughter who was born in 1977. Ms. Russell and the daughter stayed behind in Germany with her parents after Rivas left.

Rivas was back in Puerto Rico briefly, trying college again “for a weekend.” He told an interviewer, “I was finding it difficult to live there because of the differences in the cultures since I was raised stateside. I’m fluent in Spanish, but I don’t necessarily feel comfortable in the culture.”

Rivas married Brenda Hildred in 1974, and they were divorced two years later after she moved back to England. He met Delia Carponell in Puerto Rico and they married in 1977. They had two daughters, Sara and Alexandria. Delia moved with him to Ledo Beach, Fla. She eventually returned to Puerto Rico.

He met a woman named Holly Feldner while he was with Avon in Chicago, and they were married April 30, 1978. She had a daughter and two sons and they also split up.

While he was in Florida, Rivas was involved in a firm called Sigma Financial, where he would charge consulting fees for financial assistance. Rivas was also in telemarketing sales, selling “original signed lithographs” and teaching people how to collateralize loans. In Chicago, he said he worked as an equity raiser for Paine Webber and at another time was in Avon, overseeing more than 200 sales ladies. Then he set up International Equity Investment Inc. in which authorities said “a woman was used to take messages and give the appearance of large-scale activity. Money was taken from desperate people with promises of hope.” Homeowners who were in the process of foreclosure would pay Rivas a fee to find someone to buy the home and lease it back to the homeowners under a seven-year lease. Rivas “guaranteed” that if the buyer defaulted that he would find another buyer. He took a total of $15,000 from 15 homeowners facing foreclosure until he was stopped by authorities.

After he was arrested in Chicago, Rivas ran to Florida. He married Allison Coffman in Miami. They had a daughter together. Rivas was struggling when he was first in Florida, but later “I had two BMWs. A friend went out with my wife and looked at all kinds of furniture. We had about a hundred thousand dollars worth of furniture.” He had a 4,500-square-foot house with a pool table in Hollywood, Fla. He and Allison “traveled, bought furs, the whole thing.” He was worth about a quarter million dollars at the time.

He and Allison split in 1987 and that October he met Belinda Kay Miller when he advertised for topless dancers. He said he was not in the club business himself, but the owners had offered to pay him a fee if he could find topless dancers with clean records. He moved in with Belinda, who had three children of her own, and they soon decided to move to the Phoenix area of Arizona. They arrived June 21, 1988, and first stayed at the Phoenix Sunrise Motel on East Van Buren and then the Ambassador Suites on Thomas Road at 44th Street. When funds were running low, they moved to the Lazy U Motel at 27th Avenue and Indian School Road.

There he tried a variety of jobs, including the topless dancing recruiting. But he said that didn’t pay because he was unable to find any dancers who didn’t have drug problems or arrest records. Rivas sold vitamins over the phone for awhile. Also, he tried raising money for the Veterans of Foreign Wars, but he said, “It’s very difficult to convince somebody to donate to the Veterans of Foreign Wars when you have two bikers on the floor drunk, fighting over the girl they just hired that morning.”

He hit upon the idea of setting up Golden Dawn Financial and placed an ad in USA Today that brought in a number of customers. For a fee ranging from $100-$700, Rivas was to help those in financial jeopardy or in danger of losing their homes to foreclosure. The clients believed that Rivas was in contact with their lenders, arranging to re-negotiate their loans. Instead, he cashed all their checks and kept changing addresses without leaving forwarding addresses. Several of the clients, as a result, lost their homes.

Paul Anderson said he was one of those who answered the USA Today ad in October 1988. He was told that Rivas could negotiate a $150,000 loan for his business, Thin Layer Coating. He was told to wire $1,762.85 to a Rivas account, which he did on Nov. 1, 1988.
A few days later, Rivas got the money out of the account and moved from 4627 W. Perdue in Glendale, Ariz., to parts unknown. His phone was disconnected.

Phillip Craine also responded to the ad and was told by Rivas that for a $175 advance fee he would get a $30,000 loan. After paying the money, he heard nothing more from Golden Dawn Financial.

Beth Camacho and Pat Schwendemann were told that Rivas could help them with their telemarketing operation, including writing the script. They turned over $1,500 to him, then Rivas moved again.

David Thompson paid Rivas $287.50 for supposedly helping him line up a $40,000 small business loan. He didn’t get his money back or obtain the loan.

Dan Isabelle, who was behind on his house payments, paid Rivas $650 in hopes he could help with a refinancing. After waiting several weeks, Mr. Isabelle found that Rivas had moved on without leaving a forwarding address.

After getting a foreclosure notice, Virginia Stanfield saw the Rivas ad and paid him $525. She got no help from the swindler.

Robin Herrera was also facing foreclosure on her home, and she paid Rivas $650 to intervene with HUD. She later said she felt from the start that Rivas was “underhanded and illegal.” She wound up losing her home.

Luis Hiram Rivas

1985 in Chicago, Ill. Arrested for felony theft by deception. Rivas cashed two checks on a closed account. Met with Illinois investigators to explain problems with his International Equity Investment Inc. Promised to provide the Illinois attorney general with 15 names and addresses as well as make restitution. Fled to Florida and began selling artwork.

1987 (August) in Miami, Fla. Arrested for grand larceny involving an equity skimming scam. Placed on six months probation.

1988 (November) in Phoenix, Ariz. Charged with illegally conducting an enterprise, theft, and fraudulent schemes and artifices.

2007-2008 in Chattanooga, Tn. Accepted over $31 million in investor funds. Skipped out to parts unknown.

Arizona Officials In 1988 Warned That Rivas Would “Take The Money And Run”

Luis H. Rivas when he was arrested in Arizona in 1988 and recently in Chattanooga

ForexPeaceArmy latest forex scam, in partnership with the famous con man Rivas. Investors who handed over more than $31 million to Luis H. Rivas while he was headquartered in Chattanooga for the past year had no idea they were dealing with a slick con man who Arizona officials had figured out back in 1988.

Phoenix, Ariz., prosecutor John R. Evans, at a time Rivas was stealing peanuts compared to his recent run, said Rivas was “an excellent scam artist. He can be very convincing on a variety of subjects. He can take people’s money with no ability to perform on his promises. The man can earn a great deal of money through his words.”

Prosecutor Evans said Rivas “has a tremendous talent for creating false appearances. If he is allowed to use his talent, people’s hard-earned dollars and false hopes will fill his coffers.

“The defendant has used his talent since 1985 in Illinois. He moved to Florida and used his skills until 1988. His crimes in Arizona started in August 1988 and were stopped Nov. 22, 1988. It is time that his crimes were stopped for as long as possible.”

Prosecutor Evans noted that Rivas “already had one period of probation in Florida, which did not change his approach to life.”

Michael L. Goss, Rivas’ probation officer, said, “The defendant certainly appears to exhibit a pattern of fraudulent behavior. Although this writer would certainly agree that the defendant is highly intelligent, he would very likely be very successful if his talents were used legitimately and legally. This writer has great concern for the victims, who suffered significantly not only by the defendant’s actions, but also by their failure to recognize the defendant’s actions as illegal.

“Based on the number of victims in this case as well as the defendant’s prior criminal history, this writer sees no reason that the defendant should be granted leniency in this case.

“Obviously, the defendant was not impacted by his placement on a previous probation grant, but alternatively became involved in a series of offenses of a much greater magnitude than those in which he was previously involved.

“This writer views the defendant as a very dangerous individual in the sense that he is able to talk his way into just about anything.

“It is this writer’s opinion that the defendant preys on individuals who are not well versed regarding certain financial matters and, by the time the victims realize what has happened, the defendant is long gone.”

The probation officer said Rivas told him he had enrolled at the University of Maryland in 1974 and obtained a bachelor’s degree in philosophy and mathematics. A check was made with Amy Elzeldin at the University of Maryland records office. She searched through the university records from 1970-1983, including a check of attendance at an overseas class. No Luis H. Rivas.

John Stahl, the detective assigned to investigate Rivas in Arizona, recommended that Rivas, who was then 35, be sentenced to the maximum term. He said he felt that Rivas “manipulated the victims and misrepresented himself at the outset of the initiation of Golden Dawn Financial.”

The detective said Rivas “never intended to fulfill any terms of his ‘contract’ and his intentions were evidenced by several attempts to vacate his residence, disconnect his phone and leave no forwarding address.”

He described Rivas as “a slick individual who may very well have been a success if he used his knowledge and skills in a legal, legitimate business as the defendant is quite convincing and knowledgeable regarding numerous financial matters.”

Det. Stahl said he felt Rivas “preyed on desperate people.” He cited the fact he had been involved “in similar scenarios in Chicago and Miami.”

He felt that Rivas “has made a practice of misrepresenting himself – fraudulently accepting money from people with no intention of providing any legitimate service and ultimately moving to a different area to start the cycle over again.”

Saying Rivas presented a high risk to continue pulling off scams, he recommended that Rivas be imprisoned for the maximum term.

Authorities in Chicago were also looking for Rivas in 1988 for a scam he pulled off there. He had gone from Chicago to Miami, and he got into similar trouble there.

Rivas was finally nailed after running an operation for just a few months in Arizona and was given a 10-year state prison sentence. Rivas emerged from prison around 1995 and showed up in Chattanooga last year offering investors amazing returns that he promised he would earn through his knack for foreign currency trading.

Rivas is now on the run after suddenly closing the Bonny Oaks office in mid-May and pulling $1.6 million in investor funds out of a Chattanooga bank.

Born in Puerto Rico in 1953, Rivas was raised at Cambridge, Mass., then returned to Puerto Rico when he was 18. His parents, Luis and Anna Rivas, had a stable home and long marriage at Bayamon, Puerto Rico, and none of his siblings got into trouble. Rivas attended the University of Puerto Rico for a couple of years, then enlisted in the Army in October 1973. He went through basic training, then was shipped to Turkey and later West Germany. He suffered “stress syndrome” and was treated at Eisenhower Army Medical Center in Fort Gordon, Ga. He was given an honorable discharge from the Army in May 1977.

While Rivas was in Germany, he began living with a woman named Monica Russell, and they had a daughter who was born in 1977. Ms. Russell and the daughter stayed behind in Germany with her parents after Rivas left.

Rivas was back in Puerto Rico briefly, trying college again “for a weekend.” He told an interviewer, “I was finding it difficult to live there because of the differences in the cultures since I was raised stateside. I’m fluent in Spanish, but I don’t necessarily feel comfortable in the culture.”

Rivas married Brenda Hildred in 1974, and they were divorced two years later after she moved back to England. He met Delia Carponell in Puerto Rico and they married in 1977. They had two daughters, Sara and Alexandria. Delia moved with him to Ledo Beach, Fla. She eventually returned to Puerto Rico.

He met a woman named Holly Feldner while he was with Avon in Chicago, and they were married April 30, 1978. She had a daughter and two sons and they also split up.

While he was in Florida, Rivas was involved in a firm called Sigma Financial, where he would charge consulting fees for financial assistance. Rivas was also in telemarketing sales, selling “original signed lithographs” and teaching people how to collateralize loans. In Chicago, he said he worked as an equity raiser for Paine Webber and at another time was in Avon, overseeing more than 200 sales ladies. Then he set up International Equity Investment Inc. in which authorities said “a woman was used to take messages and give the appearance of large-scale activity. Money was taken from desperate people with promises of hope.” Homeowners who were in the process of foreclosure would pay Rivas a fee to find someone to buy the home and lease it back to the homeowners under a seven-year lease. Rivas “guaranteed” that if the buyer defaulted that he would find another buyer. He took a total of $15,000 from 15 homeowners facing foreclosure until he was stopped by authorities.

After he was arrested in Chicago, Rivas ran to Florida. He married Allison Coffman in Miami. They had a daughter together. Rivas was struggling when he was first in Florida, but later “I had two BMWs. A friend went out with my wife and looked at all kinds of furniture. We had about a hundred thousand dollars worth of furniture.” He had a 4,500-square-foot house with a pool table in Hollywood, Fla. He and Allison “traveled, bought furs, the whole thing.” He was worth about a quarter million dollars at the time.

He and Allison split in 1987 and that October he met Belinda Kay Miller when he advertised for topless dancers. He said he was not in the club business himself, but the owners had offered to pay him a fee if he could find topless dancers with clean records. He moved in with Belinda, who had three children of her own, and they soon decided to move to the Phoenix area of Arizona. They arrived June 21, 1988, and first stayed at the Phoenix Sunrise Motel on East Van Buren and then the Ambassador Suites on Thomas Road at 44th Street. When funds were running low, they moved to the Lazy U Motel at 27th Avenue and Indian School Road.

There he tried a variety of jobs, including the topless dancing recruiting. But he said that didn’t pay because he was unable to find any dancers who didn’t have drug problems or arrest records. Rivas sold vitamins over the phone for awhile. Also, he tried raising money for the Veterans of Foreign Wars, but he said, “It’s very difficult to convince somebody to donate to the Veterans of Foreign Wars when you have two bikers on the floor drunk, fighting over the girl they just hired that morning.”

He hit upon the idea of setting up Golden Dawn Financial and placed an ad in USA Today that brought in a number of customers. For a fee ranging from $100-$700, Rivas was to help those in financial jeopardy or in danger of losing their homes to foreclosure. The clients believed that Rivas was in contact with their lenders, arranging to re-negotiate their loans. Instead, he cashed all their checks and kept changing addresses without leaving forwarding addresses. Several of the clients, as a result, lost their homes.

Paul Anderson said he was one of those who answered the USA Today ad in October 1988. He was told that Rivas could negotiate a $150,000 loan for his business, Thin Layer Coating. He was told to wire $1,762.85 to a Rivas account, which he did on Nov. 1, 1988.
A few days later, Rivas got the money out of the account and moved from 4627 W. Perdue in Glendale, Ariz., to parts unknown. His phone was disconnected.

Phillip Craine also responded to the ad and was told by Rivas that for a $175 advance fee he would get a $30,000 loan. After paying the money, he heard nothing more from Golden Dawn Financial.

Beth Camacho and Pat Schwendemann were told that Rivas could help them with their telemarketing operation, including writing the script. They turned over $1,500 to him, then Rivas moved again.

David Thompson paid Rivas $287.50 for supposedly helping him line up a $40,000 small business loan. He didn’t get his money back or obtain the loan.

Dan Isabelle, who was behind on his house payments, paid Rivas $650 in hopes he could help with a refinancing. After waiting several weeks, Mr. Isabelle found that Rivas had moved on without leaving a forwarding address.

After getting a foreclosure notice, Virginia Stanfield saw the Rivas ad and paid him $525. She got no help from the swindler.

Robin Herrera was also facing foreclosure on her home, and she paid Rivas $650 to intervene with HUD. She later said she felt from the start that Rivas was “underhanded and illegal.” She wound up losing her home.

Luis Hiram Rivas

1985 in Chicago, Ill. Arrested for felony theft by deception. Rivas cashed two checks on a closed account. Met with Illinois investigators to explain problems with his International Equity Investment Inc. Promised to provide the Illinois attorney general with 15 names and addresses as well as make restitution. Fled to Florida and began selling artwork.

1987 (August) in Miami, Fla. Arrested for grand larceny involving an equity skimming scam. Placed on six months probation.

1988 (November) in Phoenix, Ariz. Charged with illegally conducting an enterprise, theft, and fraudulent schemes and artifices.

2007-2008 in Chattanooga, Tn. Accepted over $31 million in investor funds. Skipped out to parts unknown.