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Archive for Thursday, June 10, 2010

25 years ago: Cease-and-desist order attempts to shut down Culture Farms Ponzi scheme

June 10, 2010

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A permanent cease-and-desist order handed down by Kansas Securities Commissioner John Wurth ordered Culture Farms Inc. to stop buying milk cultures and recycling them into starter kits to grow new cultures. Wurth charged the company and Activator Supply of Pahrump, Nev., with involvement in a giant Ponzi scheme with potential starter-kit sales of at least $63 million. The order did not prevent Culture Farms from purchasing homegrown cultures and selling them for cosmetic use, but it did prevent them from purchasing cultures and recycling them into new starter kits. Wurth was frankly uncertain whether the company could continue to operate under the new conditions.

A meat smoker at the Bum Steer Bar-B-Q, 2554 Iowa, was the source of a fire at the restaurant which caused damage to the smoker room and one adjoining room. Fire damage was expected to be slight.

The Lawrence High School band arrived back in Lawrence after their weeklong trip to the Portland, Ore., Rose Festival.

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