Sep 21, 2009 12:49 pm US/Pacific
L.A. Man Questioned About Suspected Ponzi Scheme
LOS ANGELES (CBS) ―
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109 times is the amount Gerald Burke refused to answer questions in a video taped deposition about his suspected ponzi scheme.
CBS
"I take the fifth," says millionaire businessman Gerald Burke.
109 times he took the fifth.
109 times is the amount Gerald Burke refused to answer questions in a video taped deposition obtained by CBS2 News.
We first exposed Burke back in April. He ran GJB Enterprises in West L.A. after 5 years of good returns.
Things shortly came to an end and his office was shut down, leaving investors with nothing.
Many fear a ponzi scheme similar to Bernie Madoff who took investors for billions. Burke was sued by some of those investors looking to get their cash back.
Burke was called to answer questions in June where he raised his right hand and swore to tell the truth.
"So help me God," says Burke.
But when it came to giving answers, Burke hid behind the constitution.
"Investors have alleged you ran a ponzi scheme and took their money. You have a chance to tell me where the money is so these investors can get their life savings back. Will you tell me where the money is?" asks the prosecutor.
"I take the fifth," says Burke.
"Did you take GJB's funds and disperse them to yourself?" asks the prosecutor.
"I take the fifth," says Burke.
While Burke is refusing to talk he has started to cooperate with investigators trying to find his assets. He has voluntarily turned over the keys to one of his million dollar condos here in Century City.
We've also learned the U.S. Attorney's office has convened a federal grand jury to look into the entire situation.
"Do you have a desire to help us return money to the investors?" asks the prosecutor.
"Yes," says Burke.
Burke stated that he wants to help but has no specifics. Investors are zeroing in on millions of dollars that may be held in banks in his native Canada.
The millionaire businessman claims he's undergoing cancer treatments and told one investor that's why the business went under.
"My question to him was you're some kind of medical miracle," says attorney Matt Kohn.
(© MMIX, CBS Broadcasting Inc. All Rights Reserved.)
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