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Part III of III
A Real-World Ponzi Scheme: Millennium III Corporation

History:
At an early age, Gregg Scott Luce believed he was connected to the prestigious Time-Life Henry Luce legacy, although it is uncertain if this belief was due to personal or familial delusion. Luce left his dysfunctional family and started trafficking marijuana, which eventually grew into major distribution of cocaine in the 1980s. Luce established a distribution hub in Seattle, Washington, using his knowledge of nautical maps to import drugs from Colombia. He hosted cocaine-fueled parties attended by prominent individuals and expanded his operations across the United States and into Canada. When the drug ring was busted, Luce took a hiatus and observed economic trends, eventually entering the fast-paced world of new media startups in the early 1990s.

Ponzi Scheme:
Gregg Luce transitioned from drug trafficking to Wall Street, founding Millennium III Corporation (MIII), a broadband media streaming company. To avoid SEC regulations, Luce limited his initial investor pool and violated exemption provisions later on. Rather than issuing shares, he issued convertible note loan agreements. Luce portrayed MIII as a non-profitable trust that would transform into a bank, ensuring the liquidity of capital funds and the security of investor money. Despite his lack of knowledge in the company’s core product, Luce surrounded himself with technology specialists to present a facade of legitimacy.

Seven years after MIII’s founding, concerns arose when original note holders received no communication or returns on their investments. Luce refused to honor the promissory notes and it became apparent that he used money from new investors to pay off old investors. The Ponzi scheme was exposed, and as a lawyer retained to review IP issues, I reported Luce’s misuse of corporate funds to shareholders and law enforcement. Luce embezzled from MIII and fled to Arizona, leaving investors in Washington State, Nevada, and Idaho with no recourse for their lost investments.

A New Scheme:
In Arizona, Luce changed his business model to target the New Age Sedona market, offering self-improvement courses and fantastical ventures like space tourism. Exploiting the faith-based nature of these offerings, Luce solicited investors under the banner of a foreign corporation registered in Arizona. Despite investigations by attorney general offices in Washington and Arizona, investors have not been able to recover their lost funds.

It is important to remain cautious and vigilant against Ponzi schemes and manipulation in the financial industry.
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Ihab Salloum