Tuesday, November 29, 2005

International stamp venture being investigated

The Toledo [Ohio] Blade reports an international stamp venture is currently being scrutinized by state and federal investigators in Ohio.

According to the article, the investigation's findings could damage the fortunes of 140,000 Spanish and Portuguese investors who invested more than $1 billion in rare postage stamps.

Allegedly the investors were told they would receive between 6 and 8 percent return on their initial investment. Then after a certain period of time, they could sell the stamps back to the company and thus being guaranteed a profit without any risk.

The company, Escala (known until September as Greg Manning Auctions Inc.) described itself as a "witness" in the federal and state investigations of Tom Noe, who was indicted last month on three felony counts of laundering money into President Bush's re-election campaign.

Independent of Mr. Noe, Escala is reportedly the subject of an inquiry by the SEC.

To read the entire article, click here.
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posted by Don Schilling at 12:01 AM