Michael Eugene Kelly
Encyclopedia
Michael Eugene Kelly is the owner of Yucatan Resorts, Resort Holdings International, Puerto Cancun
and Avanti Motor Corporation. With 23 others, he is accused by the FBI and the United States Attorney's Office of operating a $428 million Ponzi scheme
that defrauded over a thousand elderly and senior citizens of their retirement money.
Kelly was arrested in his hospital room at the Mayo Clinic
on December 22, 2006 just before he was about to be discharged to return to one of his homes in Cancún
, Mexico. In pretrial services, Kelly claimed that he earned $55,000 a year and had only $48,000 in assets. In spite of this claim, Kelly offered a private jet, four yacht
s and race track
as collateral at his detention hearing. He was denied bail and remanded to the Metropolitan Correctional Center, Chicago
. Kelly attempted to avoid indictment by arranging a plea agreement that included paying restitution to the victims. On 14 May 2008, Kelly pled not guilty to 14 counts of fraud and was remanded in custody. On 14 April 2009, a court permanently enjoined him from violating sections of the Securities Exchange Act of 1934.
Puerto Cancún
Puerto Cancún is a marina and land development in the Mexican state of Quintana Roo, north of the city of Cancún, planned to include a golf course, hotels, condominiums, time shares and spaces for retail businesses...
and Avanti Motor Corporation. With 23 others, he is accused by the FBI and the United States Attorney's Office of operating a $428 million Ponzi scheme
Ponzi scheme
A Ponzi scheme is a fraudulent investment operation that pays returns to its investors from their own money or the money paid by subsequent investors, rather than from any actual profit earned by the individual or organization running the operation...
that defrauded over a thousand elderly and senior citizens of their retirement money.
Kelly was arrested in his hospital room at the Mayo Clinic
Mayo Clinic
Mayo Clinic is a not-for-profit medical practice and medical research group specializing in treating difficult patients . Patients are referred to Mayo Clinic from across the U.S. and the world, and it is known for innovative and effective treatments. Mayo Clinic is known for being at the top of...
on December 22, 2006 just before he was about to be discharged to return to one of his homes in Cancún
Cancún
Cancún is a city of international tourism development certified by the UNWTO . Located on the northeast coast of Quintana Roo in southern Mexico, more than 1,700 km from Mexico City, the Project began operations in 1974 as Integrally Planned Center, a pioneer of FONATUR Cancún is a city of...
, Mexico. In pretrial services, Kelly claimed that he earned $55,000 a year and had only $48,000 in assets. In spite of this claim, Kelly offered a private jet, four yacht
Yacht
A yacht is a recreational boat or ship. The term originated from the Dutch Jacht meaning "hunt". It was originally defined as a light fast sailing vessel used by the Dutch navy to pursue pirates and other transgressors around and into the shallow waters of the Low Countries...
s and race track
Race track
A race track is a purpose-built facility for racing of animals , automobiles, motorcycles or athletes. A race track may also feature grandstands or concourses. Some motorsport tracks are called speedways.A racetrack is a permanent facility or building...
as collateral at his detention hearing. He was denied bail and remanded to the Metropolitan Correctional Center, Chicago
Metropolitan Correctional Center, Chicago
The Metropolitan Correctional Center, Chicago is a federal remand center in the United States, located in downtown Chicago, Illinois, at the intersection of Clark and Van Buren Streets. It has a triangular footprint, and has an exercise yard for the prisoners on its roof...
. Kelly attempted to avoid indictment by arranging a plea agreement that included paying restitution to the victims. On 14 May 2008, Kelly pled not guilty to 14 counts of fraud and was remanded in custody. On 14 April 2009, a court permanently enjoined him from violating sections of the Securities Exchange Act of 1934.
External links
- SEC vs. Michael E Kelly, Michael P Kelly, Donald L Kelly and 23 others
- Avanti Motors website Final news item, 27 October 2006
- Brady-Lunny E SEC: B-N man defrauded seniors of over $6.4 million Pantagraph (Bloomington, Illinois), 12 September 2007