Jason Meyer and his get-rich gold scam

Rochester man promised gold mines and made off with the cash

Macari and his business partner had promised investors returns as high as 160 percent per month through high-yield notes, discount notes, and prime bank instruments. The partners used counterfeit securities to convince investors that the program was safe.

From 1995 to 2002, Macari and his partner swindled investors in the United States and overseas of $23 million through their fraudulent investment scheme. Finally, in 2002, the partners were sentenced to 30 to 37 months in federal prison.

In 2005, Macari was released. Sometime after that, he encountered Jason Meyer and wrote him a check for $440,000.

Now Meyer was holding a bad check from a man who'd scammed people for seven years without getting caught.

  

FROM THE QUIET of his suburban home in Clinton Township, Michigan, A.J. Watson—the man who told Butts that Meyer was trustworthy—built a financial empire. Cash Flow Financial, LLC was a private investment club with an air of exclusivity.

The concept was simple: Investors could pool their assets to get leveraged returns they couldn't access on their own. As long as they followed a few simple rules, it was all perfectly legal.

Watson invested the members' money with Trade LLC, a Florida trading company that promised hefty returns through short sales of stock. Initial investors in the Cash Flow club were promised returns of 10 percent monthly, and for a while the checks came rolling in.

Then Watson started making side investments, including one with Jason Meyer.

Meyer told Watson he had an extremely profitable trading program in U.S. treasuries, according to court documents. By July 2009, Watson ponied up $3.9 million of the private club's money.

Around then, the club's deal with Trade LLC unraveled: The Securities and Exchange Commission was investigating the Florida trader for operating a Ponzi scheme.

The investment with Meyer didn't turn out much better. Instead of high returns, Meyer passed the club's money on to four people in Texas, Florida, and New Jersey. The bulk of the cash—close to $3 million—went into Meyer's own accounts. The club got back just $625,000, a fraction of their investment.

In November 2009 the investment club filed a lawsuit against Meyer, accusing him of securities fraud and racketeering, crimes that can be prosecuted under the organized crime provisions of the federal RICO Act.

  

THE NEXT MONTH, Bernie Butts filed a lawsuit against Jason Meyer for not completing their deal.

Meyer never bothered to respond to any of the court paperwork. He never hired a lawyer—at least not one who did any work for the case. Meyer didn't even bother to show up in court, and Butts won his case by default: a $19.8 million judgment.

Butts filed a complaint with the Minnesota Attorney General's Office. He sent the court documents to the Rochester newspaper, which ultimately ignored them. He posted about the case online, filing a Rip-Off Report entry and telling his story on a special site he set up specifically to warn everyone about Meyer.

Butts collected email addresses for everyone he could find who Meyer owed. He sent them mass messages asking for help in providing information about Meyer.

But after doing this for months, Butts still didn't have his money back—not his initial investment, and definitely not the return that Meyer had promised. So he hired a Minnesota attorney to track Meyer down and force him to pay up or to go to jail.

"I think with me, he bit off more than he can chew," Butts says.

  

ON NOVEMBER 4, 2010, Jason Meyer came to Long Island with his attorney. For nearly a year, Meyer had avoided repeated requests to be interviewed in the case that A.J. Watson had filed against him, coming up with excuse after excuse and avoiding calls and letters. Now, finally, he would talk.

Meyer and his lawyer sat down in the small interview room. Watson's attorney, Harry Wise, directed the video technician to start rolling the tape. The stenographer fired up her shorthand machine.

Wise opened his line of questioning with a few softballs.

"What is your name, please?" he began.

"Jason Michael Meyer."

"What is your address?"

"P.O. Box 7728, Rochester, MN, 55903."

"My name is Harry Wise, I am a lawyer," Wise continued. "I represent Cash Flow Financial, LLC, in the lawsuit against you and various other defendants. Are you familiar with that lawsuit?"

"I am invoking the right to plead the Fifth Amendment," Meyer replied.

"You believe that answering the question I just asked you might lead to evidence of criminality?" Wise said.

"I plead the Fifth."

"Do you intend to plead the Fifth to every question I ask here today?"

"He does," interjected Meyer's attorney.

Wise wasn't ready to give up.

"Mr. Meyer, what is your address?" he said.

"I plead the Fifth."

"Do you own any real estate?"

"I plead the Fifth."

"Are you a high school graduate?"

"I plead the Fifth."

For more than an hour, Wise continued to ask Meyer basic questions about his business dealings in general, and with A.J. Watson. Over and over, Meyer gave his stock answer: "I plead the Fifth."

Wise was so incensed by the extremely unusual behavior, he filed a three-page letter to the judge complaining.

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31 comments
John Adams
John Adams

Before making an action, try to have the best plan or have the information on that company first. To engage in investments really takes a lot of care because it includes money and property. Like Meyer he is a man with a word, he could do everything and can stand what he speaks of. Good for him he was able to have that opportunity in earning lot money because of the work being offered for him. Gold really means a lot to all the people.buying selling gold

Gold Silver Metal Scams
Gold Silver Metal Scams

Precious metals investments are a scam period. Fraud is rampant because the regulators are managed by the biggest cons of all, the politicos. George Soros, a convicted felon in Europe, runs one of the worlds biggest ponzi schemes, and happens to be one the biggest political donors. Follow his political donations, and any other recipients of Federal "relief" money, and you can see how this once great nation has been turned into a Banana Republic.

Precious Metal Scams Fraud
Precious Metal Scams Fraud

Great article. Dont buy precious metals on "leverage", or in a company that doesnt have any history. Even negative feedback is better than no feedback. Also ensure that they have some kind of business or broker license. The CFTC almost makes things worse duping us into thinking the market is regulated. ITS NOT. The SEC and the CFTC cant or wont deal with rampant fraud from the "legitimate" investment/banking sector, and the FBI has their hands tied by the political enablers. Good job Bernie.

"Liz"
"Liz"

Jason Meyer is "Rochester". Without him the lumber companies, title companies and Realtors will be bored because they will have nothing to talk about. I worked for one of those and they were all jealous of him regardless if it was good or bad. Two worlds collide, rival nationsIt's a primitive clash, venting years of frustrations. Great guy, Great ideas, Thank you Jason Meyer for all you have done for me.

Jason
Jason

What normal human would give this Meth Freak a dime? Everyone here in Rochester has knowen about his scams for over 5 years. The people he has scammed in this town alone is incredible.

His wife is in on everything and has to stop the blond - dumb "i dont know" because SHE does know. She loves the money!

If your a friend or family member, RUN dont walk RUN!

Jennifer knows everything!

glad to see this piece!
glad to see this piece!

"The disturbing part is when we went for help to the authorities we didn't get any," Rice says. "We filed a report with the FBI. But nothing was ever made of it."

Par for the course in Rochester. It's rare for Minnesota's FBI to step up to investigate anything coming out of Rochester and it's not because there isn't corruption. Plenty of that. Perhaps the problem is the that the problem has been allowed to get out of hand so they don't know where to start.

Jay Furst
Jay Furst

Good reporting -- props to Erin for getting the story, but she's incorrect that the Post-Bulletin "ultimately ignored" Butts' letters and paperwork on the matter. Erin called me 2-3 months ago and asked for background on the case, whether we had stories in archive, etc. I told her we'd made some calls, checked it to a point but hadn't given it full attention, were extremely interested in the story, were interested in any ledes she had. In the end, we dropped the ball. But we've reported pieces of this and did not "ignore" the story. -- Jay Furst, managing editor, Post-Bulletin

Marvin
Marvin

Read the blog website below. People love this Erin girl that is for sure. Must be why she is at City Pages. Here are some quotes:

http://www.modern-radio.com/bo...

tusk So mean spirited. Erin Carlyle must be a total hole.

The DeciderAnd the king of these major offenses to journalism is our girl Erin!"

cv_joshsomeone ought to find a picture of this erin carlyle lady and print her "profile" in their free publication. and then the editors of the city pages "profiles" as well.

groovyluciferI trust the City Pages will publish a picture of Eric Carlyle and list the places she hangs out. Applebees in Robbinsdale, perhaps?

I think this is the basic problem. City Pages ownership is trying to make as much money as possible, f k everything else, and their editorial staff is going along with it.

Marvin
Marvin

As you can tell by this website below people Love Erin. Read some of the quotes on the bottom from all her fans.

http://www.modern-radio.com/bo...

The title of it is: F&*k you city pages and here are some quotes.

tusk7/31/09 8:39 AM So mean spirited. Erin Carlyle must be a total as*hole.

lilganglingsThis article was an uncomfortable read for sure. The City Pages, The Police"force", and Erin Carlyle have MONEY to go with their addictions and disabilities...I wanna write/read an article about this dreadful teamwork they constructed. Good luck falling asleep jerks. I hope that one guy grabs all of them in the crotch!

groovyluciferI trust the City Pages will publish a picture of Eric Carlyle and list the places she hangs out. Applebees in Robbinsdale, perhaps?

cv_joshsomeone ought to find a picture of this erin carlyle lady and print her "profile" in their free publication. and then the editors of the city pages "profiles" as well.

The Decider"And the king of these major offenses to journalism is our girl Erin!"

Pete
Pete

You have an attorney with years of experience that didn't care about what he was investing in but wanted to invest millions; You have a Watson investment club that lost millions to another group also, Trade LLC; You have Rice who is an "experienced investor" as his attorney would say in the article; Hooks who did a real-estate deal; Then you have Myers who also lost money to Macari;Am I missing something because this sounds like a bunch of sloppy investments. I thnk the story needs to focus on the term "Reckless Investments" on all parties involved.

F*c*y
F*c*y

He didn't bother to explain where these gold mines were located, and Butts wasn't worried about that.

LOL that sums it up.

How long has Mr. Butts been practicing Law?If Mr. Butts used funds from his firms escrow for this investment, he may be in more trouble than Meyers. He invested in Gold and never saw the gold mines? Wow! Someone should have vetted this deal for Mr. Butts, but then again he is only an Attorney. Real investors Vet deals A/Z

Education for all - No where can you get Gold below spot!

Lovelyperson
Lovelyperson

muck‧rak‧ing [uncountable]TCN the practice of telling or writing unpleasant and perhaps untrue stories about people's private lives, especially famous people: Two of the candidates complained of unfair muckraking during the election campaign.—muckraking adjective—muckraker noun [countable]

Shelly1
Shelly1

What type of magazine is the City Pages? Is it along the same lines as the National Enquirer? This story sounds completely fictional. What kind of name is Bernie Butts?

Sointly
Sointly

Hmmm...if it's too good to be true it probably isn't.

Joe B.
Joe B.

Typical Rochester MN comment "Jason". What is fascinating is the people that hide behind the fake names they use and call him names like "Meth Freak".

Here's the best part:Fact: The guy don't do drugs. Fact: The guy hasn't been investing for over 5 years.

Here is the best part about your nonsense: "What normal human would give this Meth Freak a dime" and "Everyone in town has known for over 5 years":

If that is true then how does he scam people in his own town?

You be a Coward and hide while you make up lies and say your name is "Jason". And to use his wife as a target, unless you are a women, grow some balls.

I have known this man for 7 years. I bet you can't count on one hand the people in Rochester MN that has GIVEN him money and not been paid back or made money.

I will fly in this weekend and personally pay them back if you have more than a handful.

If not, keep hiding little man. He has never let me down on any business!

just sayin'
just sayin'

Seems to me that the Post Bulletin doesn't give anything their full attention. One wonders who actually writes the news here, but sometimes it appears they're not even from the area. The PB had the information to write a story about this in February of 2010 but they did nothing. The PB claims to have made some calls and checked it "to a point" but since there was no story at that time, and we didn't even get the BIG story until the day after it broke in the Twin Cities, one wonders where they were checking. This happens over and over in Rochester, where our Managing Editor seems to feel it is more important to censor the news to create the false impression about our community, than it is to write hard-hitting facts about the rampant public corruption, corporate crime/Ponzi schemes/money laundering etc.,. You can "lede" the PB horses to a story, but if the powers that be don't approve if, they will refuse to drink.

F*c*y
F*c*y

Mr. Furst, FACT: People have been paid / offered money for information on this case.

As we all know "credible people" of your paper have been paid off to offer information that is not true. Everyone loves to jump on a band wagon without knowing the facts.

Let the dust settle and then - lets fire those that had an agenda to get "PAID" and write a BLOCK BUSTER ARTICLE TO GET A RAISE FROM YOU SIR!

It all a scam
It all a scam

That may be valid if it were not for tje fact that gold, silver, palladium and any other precious metal investments companies are scamming millions across the country and the world. Nobody is doing anyting about it. Look up "silver scams" for example and you'll get endless results.

The regulators are not doing their job, they dont even go after companies for not registering. So if an investor looks up a company for disciplinary actions, they'll find nothing. Only to find out, after being scammed, that the boiler operation was established by an ex con known to regulators. They will do nothing about it.

Look up, Andrew Wilshire, Worth Metals, Gold Bullion, ex con scamming consumers as I type. Pete, we have a real problem in this country right now.

FakU
FakU

Good point F*c*y! What can happen if Butts took money from his firms escrow? I am not familiar with what that is.

Benji
Benji

Joe - You clearly do not truly know Jason Meyer. I personally know of 4 people in Rochester he has clearly defrauded. Promised returns and then promise to pay back, but only met with a bounced check. This was 4 people I know personally. It's He did this to families who did not have big incomes and their families paid the price for Jason Meyer's lies. Jason Meyer will get exactly what he deserves and that should be lengthy prison sentence. It's people like you who believe his lies and tell everyone he is a great guy.."go ahead and trust him".. You should be ashamed of yourself....Have you read the history of this guy? Quit lying to yourself and open your eyes.. Or maybe your one the ponzi schemesters too? Sure sounds like it..

F*c*y
F*c*y

Simple, a Court ordered disbarment from the bar of the state of Florida.

Jsmith0260
Jsmith0260

Joe B.

What's the name of your company? From which institutions did you graduate? Your credentials seem empty:) You talk as big as Jason Meyer, but are just as small.

I knew Jason Meyer. An investment gurue, college graduate, and/or architect... he was not. A fast and efficient CAD draftsman was his trade.

He got in over his head in and let the greed of the devil run his life. Hopefully justice will send him away.

Joe B.
Joe B.

Here are my credentials Mr. Benji;

I run a Venture Capitalist company that consists of Five partners, Four Principals, and 19 other employees We have over $15 billion in transactions to dateI am an active angel investor with over $350 Million in funds available I currently hold a M.B.A. and a B.S. in Business with a major in AccountingI have executed transactions totaling more than $7 Billion

Now Mr. Big Shot Benji, if you can beat those credentials and think you know all about one of my personal friends then lets get this done. Like I mentioned, I have known him for 7 years. You prove me wrong and I will shut my mouth and pay cash to those people. If not then keep sucking on your straw little man.

Joe B.
Joe B.

On another note, Jay from the PB should feel proud he didn't fall into the category of getting paid to do an article. The author, who is now rich, goes from writing an article about Mr. Meyer to writing an article about becoming a Wingman.

Enjoy Citypages lovers: http://www.citypages.com/2011-...

Joe B.
Joe B.

Benji- I like the new name. Did you get that from the dog movie, Benji. ;-) I don't recall him ever mentioning a guy by that name but I will look into it. Sorry homer, but you made it sound like a never ending list of people that he screwed in his home town, now you are winding it down to 4. I bet eventually I could get that number down even further. Like I said, I will be glad to fly and personally give them pay, but then again, I doubt you can prove your word.

Joe B.
Joe B.

Benji- I like the new name. Did you get that from the dog movie, Benji. ;-) I don't recall him ever mentioning a guy by that name but I will look into it. Sorry homer, but you made it sound like a never ending list of people that he screwed in his home town, now you are winding it down to 4. I bet eventually I could get that number down even further. Like I said, I will be glad to fly and personally give them pay, but then again, I doubt you can prove your word.

On another note, Jay from the PB should feel proud he didn't fall into the category of getting paid to do an article. The author goes from writing an article about Mr. Meyer to writing an article about becoming a Wingman. What a credible newspaper!

Enjoy Citypages lovers: http://www.citypages.com/2011-...

Joe B.
Joe B.

Benji- I like the new name. Did you get that from the dog movie, Benji. ;-) I don't recall him ever mentioning a guy by that name but I will look into it. Sorry homer, but you made it sound like a never ending list of people that he screwed in his home town, now you are winding it down to 4. I bet eventually I could get that number down even further. Like I said, I will be glad to fly and personally give them pay, but then again, I doubt you can prove your word.

On another note, Jay from the PB should feel proud he didn't fall into the category of getting paid to do an article. The author, now filthy rich from this article Erin, goes from writing an article about Mr. Meyer to writing an article about becoming Wingman and getting L@#d. What a credible newspaper!

Enjoy Citypages lovers: http://www.citypages.com/2011-...

Faku
Faku

I really hope for Butts that is not the case. I am sure Meyer would expose that.

 
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