Family Home Evening with a Fraudster

Last week the U.S. Attorney’s Office filed a 17-count indictment alleging money laundering, wire fraud and bank fraud in connection with an alleged Ponzi scheme that was run by John S. Dudley, age 56, of Sandy, Utah.

In this case Dudley pitched investors at investment club meetings in people’s homes.  These were likely homes of people who are prominent in their local church or community, who then invited their friends and fellow ward members to hear a presentation. In some cases the hosts of the meeting may even have received a “finder’s fee” or other compensation if attendees invested (which is usually illegal).

I want to be clear that giving an investment pitch in someone’s home is not necessarily improper, but you need to be careful.  They do this to leverage the trust of the people whose home you meet in.  The idea is if you trust the homeowner you will be more likely to invest.

But wait! Just because you trust your friend or ward member DOES NOT mean that you can trust the person soliciting the investment.   Just because you are meeting in the home of someone you trust does not mean that the investment is sound.  Just because your neighbor thinks so-and-so is a “good guy” or a “good member of the church”  does not mean that you should invest.

Your neighbor may have invested and may even be making tons of money.  But even Ponzi schemes make money — at first that is.  Past returns are not a valid indicator of future performance, you need to do your homework.

In this case Dudley sat in Utah living rooms and told potential investors that he was an experienced and successful investor.  He said they could expect monthly returns of 5-10 percent, that he had not suffered a trading loss since 1978 and had never made less than 5 percent per month over the last 30 years.  Those statements alone should have caused  investors to run for the exit!

Like Bernie Madoff, Dudley allegedly told investors that investing with him was an “exclusive opportunity” with only a limited number of investors allowed to invest with him at one time, and he encouraged people to take out home equity loans on their homes to invest with him.  Always a good plan.

He told investors that he would generate these returns by investing their money in a foreign exchange trading program, mining speculation, European and domestic stock options and commodity trading — all of which are extremely speculative investments.

So what did he actually do with investors’ money?  He is accused of using it to pay earlier investors (a classic Ponzi scheme) and for his own personal use, including the purchase of two homes, a ski boat, meals, airline tickets, and gifts for his family.   Not such a good investment after all.

16 thoughts on “Family Home Evening with a Fraudster

  1. Something you don’t know, is that John Dudley was under indictment in the UK. He had a trading operation on insurance options and spent a lot of time in Monaco. He had his trading licenses taken away and began working as a laborer and ‘contracts manager’ under his own construction company. He under bid deals for home improvements and then waited until he almost finished the job to add on costs. He left the UK after having done wrong by many in the construction world with a letter to one business associate saying he was not a trained in construction but had done his best. This was his past before going to the USA. If you want to know who John Dudley really is, speak to the people in Surrey and South London who he allegedly cheated. Research his indictments in the UK. Now he faces the same in the USA and all his family barring one or two married off children for green cards (speculation but plausible for his own green card rather than visa) have been shipped back to the UK. Why not just be honest? Its so much easier than ripping people off. I do hope he and everyone else who follow each other on MLM and Ponzi scheme matters learn from these errors. I also believe that the LDS community should be less eager on get rich quick business ideas…it just gives these types of men the fuel they need.

    1. my name is Paul and i live in london England UK, regarding John S Dudley who has been a neighbour of mine for the past 30 odd yrs except for the times he spent in monaco and now the usa , i always thought he was a con man and after stumbling upon this i now know i was right.his wife Julie is back here living in the same council house as if nothing ever happend over there and has told us that John is still out there working.i just wondered if you knew the outcome of this case and would care to share with us or point me in the right direction to obtain the info.it would be much appreciated if you could.
      thank you Paul

      1. Paul the famous Paul Nelhams, how dare you! Don’t throw stones at others when you live in a glass house “mate”, it is no news you have issues with the law, you better be careful on your judgement. Or shall I say… “999 Paul… 999!!”

    2. I am John Dudley’s Daughter. The one that you are accusing of marrying for my green card. Can I just say that your statement IS just speculation. I love my husband dearly and am very offended that you are implying otherwise. There is alot of talk around my father and most of it is untrue or speculation (just as with your assumption of me.) He is not a monster and alot of what has happened has been blown WAY out of proportion. I would appreciate it if you would check into your information before you state them as fact. If you knew anything about the immigration system then you would know that I cannot get my dad a green card just because I married an american. And if we are talking about being honest why not use your own name, Mr Joe Bloggs. Isn’t it far easier to trash talk people on the internet if there is no accountability? At least my Father is up front and HONEST about what is happening and if you truly knew him and my family you would know that. You would not have to speculate that I married for convienence and you would know if he had cheated people and not have to use words like speculate, plausable and allegedly.

  2. I am out over $100,000 as well. I know of somebody that lost their retirement. I even know of a single mom that lost $5000. Who swindles a single mom out of her hard earned money? He plead guilty in February. Was supposed to be sentenced in June. Sentencing is set for September 3 at 10am. Expecting 5 years in prison and then deportation. Also, supposed to pay back $6 million plus to investors. Not sure where that will come from.. I would really like to at least know where my money went.

  3. John dudley got 5 years prison in new Mexico and ordered to pay bk 6 million which he never will. After his prison is up, he gets shipped back to England, forever banned from the usa and yes he did use his two legal daughters for visas, and family. I hear the whole family is back in the uk except the green card applicants, and Paul mentions council house, so the good working Brits are supporting the criminal family. Awesome. Sorry to hear that Paul. Check the fbi files it gives a true recollection of all the criminal activity and check the uk fiduciary postings for how he got shot down from coming people from Monaco then check the uk housing Revis for all the ones he conned as a non licensed contractor. Karma is real, finally dudley got caught.

  4. Did you ever see this one. Joe bloggs is almost right, he never had a license in the uk. It was all a scam but uk ahthorities caught him earlier than the usa and dudley did a plea bargain to take probation not prison but declared bankruptcy to not pay what he stole from people but he was banned from Monaco and the uk councils paid for his house. He cheated the system like a drug addict wanting welfare. http://rqn.com/blog/utahsecuritiesfraud/2011/06/08/family-home-evening-with-a-fraudster/#.U59OEbEsmVo

  5. He’s not in New Mexico any more. Prison locator says he’s not in BOP custody. Going to Utah maybe to be hear his family?

  6. He’s not in New Mexico any more. Prison locator says he’s not in BOP custody. Going to Utah maybe to be hear his family?

  7. I hear John has been moved from New Mexico in preparation for his deportation to the UK. So what happened with the judgement to pay back all the investors? Where’s our money, you no good scam artist? Once back in the UK he will somehow ‘find’ the money and keep it all. Burn in hell Dudley and take your stinking wife and your kids with you.

  8. I am the daughter of John Dudleys son in law and my father lost two houses, cars and and all the money and work he had put into all these things, for the first time ever after 8 years I have finally been able to see my dad due to not being able to financial problems after this happened! Myself, my dad and my son have missed out on years with each other, my dad missed out on the birth of his first grandchild as this all happened around the year my son was born! I will never forgive John for this as this is something my Dad feels awful about not being there for but its not his fault! He has missed out on both his kids in the UK for the last 8 years and the first 4 years of his grandchilds life all because of what John did! Things like this are precious and these are things we will both never get back! All my dad has ever done in his life has worked hard and for someone who is his own father in law to CON his own family … What sort of person does this to their own family never mind other people who have worked so hard to earn a living and put a roof over their families lives and care for them! Disgusting!! It may be one little mistake in some people’s eyes but look at all the damaged it has caused to these families!

  9. I have often wondered what happened to John Dudley and my money he scammed out of me, I met him many years ago and got drawn into his fake trading, he seemed so plausible and I even went to his sons baptism at the Mormon Church in London where he seemed to be held in high esteem. This seemed to put my mind at rest but having scammed me out of many thousands of pounds and losing my home, marriage etc, all I got what was promises he would repay me which he never did, last I heard he was involved in building projects and id be repaid but I couldnt trace him after that. It was quite a shock to come across these posts and although Ive lost many thousands myself I dont expect to get any back as it was many years ago but he destroyed my life. I feel so sorry for everyone who got involved but particularly the daughter of his son in law, thats just terrible, how on earth could someone who makes out they are very religious do that to their own family?, let alone people like me. He destroyed my life and many others, I would appeal to him to return my money but after reading everything about him I dont see that happening, to everyone else involved I am so sorry you have gone through all this, if anyone in UK reads this and got involved with him id love to hear from you, God bless to everyone who got involved, I never recovered from it but I hope somehow you have or are on the path to recovery.

  10. Makes you makes you wonder why his cunning wife stayed with him….why would anyone stay with a fraudster? Unless of course……! Twickenham School employ her. You’ve got to laugh!

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