The Goldmine of Scams, or the Scam of Goldmines?

We often see scams in the business world, they teach us what to be wary of and to not trust what anyone says without first verifying their claims. The story of Orange County man John Arthur Walthall is instructive in this way. He was able to convince a couple in their 80s to “invest” roughly $4.7 million in a company that he claimed was going to extract gold from old mines in Brazil and Imperial Valley, Nevada. This story was, of course, a farce–just like the company was.

So how did he do it? He told the couple that he had personally invested $3 million in learning the processes of gold extraction. So what did he really do with their money? Authorities seized three vehicles and $500,000 in gold coins that he had stashed under his bed. If convicted of all charges, which is likely, he will be sentenced to roughly 150 years in prison.