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November 29, 2009

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Millions seized in suspected pyramid scheme

Keith Paul

Thursday, July 19, 2001 | 10:37 a.m.

The counting of the money seized in a suspected pyramid scheme stopped Wednesday night at $12.9 million with and estimated $8 million to $10 million left to count, Metro Police said.

Metro will not attempt to forfeit the money, but instead wants to identify victims and return the cash, Deputy Chief Bill Young said.

"Metro's hope that it is returned," he said. "We know that there are a lot of mom and pop people locally who invested their life savings."

Police arrested Franklyn "Frankie" Perry Tuesday after a lengthy investigation. He was taken to the Clark County jail on fraud and child pornography charges. Police said they unexpectedly discovered child pornography when searching his house, where they found money stacked in a closet.

An informant tipped police off to the scheme Perry is accused of running. Perry has been convicted before for running an illegal money making scheme. In 1985 he was convicted and sentenced to 25 years on federal fraud charges. He served about 12 years.

Perry is accused of running a scheme that promised large returns on cash investments. The scheme was built around the money going to finance high rollers who had exceeded their credit lines at local casinos.

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