Attorney Theodore Dempster Disbarred for Running Ponzi-Like Scheme

​Theodore Ross Dempster, a relatively little-known attorney in Miami, has been disbarred after allegations he ran a racket similar to a Ponzi scheme. Dempster is alleged to have set up a company purportedly involved in real estate development in Georgia, and collected hundreds of thousands of dollars from various investors. Most of the money was used to pay previous investors, as well as Dempster's personal and business debts.

Dempster set up a trust account for McBain Investments Trust Inc. in 2008 and began soliciting investments. Alain Racimora and Michael Albert Serge Torre invested $200,000 and $150,000, respectively, with Dempster shortly thereafter. But nearly two years later, the two filed a joint lawsuit against Dempster and notified the Florida Bar.

The bar investigation found that Racimora and Torre's investments were almost completely depleted by August 2010, with most of the money going to pay Dempster's personal and business debts.

Several other investors had also kept their money with Dempster through his McBain trust, and he collected around $1.8 million total.

Dempster also did not fully comply with the bar's investigation of his scheme.

Dempster has now been disbarred by the Florida Supreme Court, which issued the following ruling:

Theodore Ross Dempster, 801 Brickell Ave., Ph-1, Miami, disbarred for seven years, effective immediately, following a March 16 court order. (Admitted to practice: 1976) An audit revealed that Dempster misappropriated client funds to satisfy personal and business obligations, in a manner similar to a Ponzi scheme. Dempster has been found guilty of violations including: misrepresentation, and engaging in dishonest, fraudulent and deceitful conduct. The auditor found numerous trust account violations and a failure to produce all the required bank records requested in the Bar's subpoena. (Case No. SC10-1829)

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