Eastern District of Pennsylvania
United States v. Lizette Morice a/k/a Gaddel Enterprises
As part of her sentence, defendant Lizette Morice was ordered to pay $7,259,950 in restitution. Approximately 3,000 individuals lost money as a result of the defendant's scheme and are entitled to restitution. To date, approximately $111,000 has been recovered. This money will be divided equally among the victims and distributed by the District Court Clerk's Office.
Most of the $7 million that was "invested" in the business has been accounted for by the government. Approximately $5 million was paid out to early "investors." Another $1.5 million was spent on employee salaries and administrative expenses. The defendant used some of the proceeds to pay her personal expenses. Despite rumors to the contrary, the government did not find any significant assets owned by the defendant.
In response to a number of inquiries by victims and/or their attorneys, the government obtained a court order allowing the disclosure of the names and addresses of the "investors" who received money from the defendant that was represented to be a return on their investments, and how much each received. This information was based upon records maintained by the defendant's company (Gaddel), as well as bank records. If you wish to obtain this information, please contact Lisa Parker at 215-861-8426 by email at firstname.lastname@example.org, or in writing at United States Attorney's Office, 615 Chestnut Street, Suite 1250, Philadelphia, PA 19106.
Additionally, there have been a number of inquiries concerning the tax treatment of losses suffered by investors. Click on the links below for a copy of an IRS Revenue Procedure that discusses this subject.