On January 21, 2011, a federal warrant was issued for Berke's arrest, by the United States District Court, Central District of California, after he was charged federally with mail fraud. If you have any information concerning this person, please contact your local FBI office or the nearest American Embassy or Consulate. Berke is believed to have fled from the United States to Canada. He has been residing in the Vancouver area (British Columbia).
Gerald Berke is wanted for his alleged involvement in a ponzi scheme that defrauded approximately 500 investors out of more than 81 million dollars. From approximately 2003 until 2009, Berke allegedly used a company, GJB Enterprises based in Los Angeles, California, to solicit investors under the pretense he was operating a factoring business --- loaning businesses money that they needed for manufacturing and to finance accounts receivable. Investors allegedly were told that factoring business does better in a bad economy and were promised an 18% return on investments. However, Berke allegedly used investors' money to make payments to earlier investors and eventually stopped. Also, Berke is alleged to have paid for personal and business expenses using investors' money.
According to the FBI, investors were lured by the promise of high returns. Investors allegedly were told that factoring business does better in a bad economy and were promised an 18% return on investments. However, Berke allegedly used investors’ money to make payments to earlier investors and eventually stopped. Also, Berke is alleged to have paid for personal and business expenses using investors’ money. The FBI is asking members of the public who have information on Berke to contact the agency or the nearest U.S. Embassy or Consulate.
Filings by the court-appointed receiver in the case suggest Berke fled to Canada in July 2010. Shortly thereafter, he allegedly withdrew $22,000 from a bank account in Canada. In October 2010, a California state judge found Berke guilty of contempt of court for violating court orders.