Attorney Theodore Dempster Disbarred for Running Ponzi-Like Scheme

moneymoneymoney.jpg
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)
Follow Miami New Times on Facebook and Twitter @MiamiNewTimes.

Advertisement

My Voice Nation Help
4 comments
Rickscobs
Rickscobs

I met him shortly after he was accepted by the Florida Bar in 1976. We used to meet regularly at the Mutiny Night Club in Coconut Grove. Back in 2001, I was in the process of getting divorce and I thought who better to represent me than Ted. Well, I gave him $2.500.00 and this moron NEVER did anything on my behalf. He should have lost his license to practice for good.

Michael Wind
Michael Wind

many attorneys do the same thing just look at them in bay harbor islands,not only thatthey do not have occupational license from the town therefore do not pay business tax,and function under protection of small town corruption,there are hundreds of companies like that in bay harbor islands 33154-where michael szafranski made his business center.....

mh
mh

another one bites the dust...

Now Trending

Miami Concert Tickets

From the Vault

 

Loading...