Ponzi suspect sued

Wednesday, Aug. 22, 2001 | 11 a.m.

Franklyn Perry, a defendant in high-profile Las Vegas fraud and child pornography cases, is being sued by a Salt Lake City couple who allege they and other investors were duped into making investments of more than $22 million to finance his scams.

Phillip and Linda Rasmussen sued Perry, claiming he induced them into investing cash for 14 promissory notes.

Police allege that while running a Ponzi scheme, Perry was telling investors he was loaning money to high-roller gamblers who had hit their credit limits.

Barry Levinson, Perry's attorney, denied the allegations.

"Perry was borrowing the monies and investing some of it in legitimate interests like real estate, AIDS research and biotechnology."

"Phillip Rasmussen had invested about $3 million to $4 million with Perry. But suing Perry for the money isn't going to get it back any faster," he said. "People were loaning Perry money and he was paying some of them back with interest of at least 15 percent to 20 percent per month. I've spoken to at least 50 investors and they aren't mad at him. In fact, some have made money with him."