Deceased industry exec said to have run Ponzi scheme
U.S.--The Marin Independent Journal reported, according to investors who are discovering the extent of their losses, that Clay Stephens, founder of Warren Capital who died suddenly in November, is now suspected of bilking friends and family alike out of as much as $23 million.
The Journal notes that according to a presentation, Warren Capital was “borrowing” about $4 million per year from investors in Warren Equipment Finance. What no one appeared to have known, however, was that at the time of his death of a heart attack in early November, Stephens was taking money from investors that was supposed to fund new business loans and instead using it to prop up his company and pay existing investors, according to several people who were briefed last week on the company’s collapse, Journal said.
According to a LinkedIn profile, Stephens held senior executive positions with Whellabrator including president of the company’s finance subsidiary, Whellabrator Financial. His last position at Whellabrator Frye was that of president and CEO of Trailmobile Finance, a national commercial finance company. Warren Capital was established by Stephens in early 1984 in Novato, CA.
To read the entire Marin Independent Journal article, click here.