The organization allegedly inflated the value of its land and made sizable loans to insolvent companies owned by insiders, according to court records. Authorities say the foundation used money from new investors to pay previous investors. The foundation filed for bankruptcy protection in 1999 after the Arizona Corporation Commission ordered it to stop selling investments. It planned to reorganize, then opted for liquidation with investors getting some 40 cents on the dollar. State Attorney General Janet Napolitano set up a victims' Internet site and phone line explaining the situation, which could take years to resolve.
Civil lawsuits are also pending.
The Daily Camera. All rights reserved. Any copying, redistribution, or retransmission of any of the contents of this service without the express written consent of The Daily Camera is expressly prohibited. Users of this site are subject to our User Agreement . You may also read our Privacy Policy .