NEW SMYRNA BEACH, Fla.,None — A couple, who own a small used car lot in New Smyrna Beach called Malibu East Motorcars (see map), was arrested for a big Ponzi scheme. The operation was worth millions.
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There are only a dozen cars on the lot, a tractor, a couple trailers, and it doesn't look lucrative. But, police say, the owners convinced people it was worth investing, in some cases, their life savings.
Bonnie and Willard Aller, 54 and 55 years old respectively, walked out of their business Monday, straight to jail, after police said the two turned their tiny used car lot into an investment scheme that earned millions.
"Was the investment potential real, Bonnie?" WFTV asked Bonnie Aller as she was led away by police.
"I'm not going to talk about it now," she said.
One of the Aller's investors came to police 18 months ago after the 20-percent return on his $100,000 never happened. Four more victims later told police the couple was supposed to use their money to buy more cars for the lot.
Victims said, despite the way the business looked, high-interest rates from car buyers with bad credit, were supposed to turn into cash, but it never did.
"A business like this makes people feel comfortable by having other investors contact them and, in the beginning, you do see payments. That's what keeps this scam alive," explained Eugene Griffith, New Smyrna Beach Police Department.
Police reports say Willard Aller would sometimes "beg like a child" for his investors to give him more cash, but that he was just spending it for himself. A former employee told police she thought the couple may have convinced as many as 70 people to give them money, for a total of $7 to $8 million.
"We're sure there's probably more and we're asking anyone who is potentially a victim of this to please come forward," Griffith said.
One victim told WFTV when the couple showed him their books that it seemed legitimate. He lost more than $100,000; some people invested more than $400,000 each.
WFTV
