Psst, Wanna Buy A Bank? How About A Few Dozen?

Daisy Johnson Butler knew how to spin a good yarn. She told some clients of her Houston loan-brokerage company that her personal net worth was as much as $40 million and that her family "owns most of the Bahamas" and is worth more than $2 billion. Those who doubted her claims or became suspicious when the up-front fees they paid did not result in loans were reassured when they received notices from European Overseas Bank Ltd. on the island of Grenada. The notices verified funds in her name and those of her company. Others got certificates of deposit or letters of credit drawn on the same bank. But nobody got any money.

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