World Plus
| Company type | Private |
|---|---|
| Industry | Airline ticket brokerage |
| Founded | 1983 |
| Founder | Rae Jean S. Bonham |
| Defunct | 1995 |
| Fate | Ceased operations following involuntary bankruptcy petition |
| Headquarters | Fairbanks , United States |
Key people | Rae Jean S. Bonham (manager) |
World Plus was an airline ticket brokerage firm managed by Rae Jean S. Bonham and headquartered in Fairbanks, Alaska. This enterprise has been characterized as a Ponzi scheme and is recognized as the most significant investment scam in the history of Alaska.
History
RaeJean Franklin, born in 1950, relocated to remote regions of Alaska during the early 1970s. She held the position of postmaster in Chatanika until 1977, when she was convicted of embezzlement and fraudulent activities involving postal money orders.
In 1983, Bonham established World Plus, Inc. in Fairbanks. The company engaged in trading on the black market for frequent flyer miles. The U.S. Department of Justice reports that by 1989, World Plus had evolved into a Ponzi scheme, relying on funds from new investors to pay returns to earlier participants. The number of investors reached approximately 1,200, with total investments estimated between $15.3 million and $50 million.
World Plus was forced to cease operations in December 1995 following an involuntary bankruptcy petition filed by creditors in United States bankruptcy court. Trustee Larry D. Compton conducted an investigation into Bonham’s financial dealings, subpoenaing bank statements to expose the covert operation, which had predominantly expanded through personal referrals. Compton disclosed that he had received threats to his life from certain investors.
In the 1998 case United States v. Bonham, she admitted guilt to federal counts of mail fraud and money laundering. The subsequent sentencing in 1999 resulted in five years imprisonment with two years suspended, along with a decade of probation.
While incarcerated under federal charges, the State of Alaska brought forth additional allegations including perjury and securities fraud. Although Bonham initially succeeded in having these charges dismissed on double jeopardy grounds, this decision was reversed upon appeal in 2001.
Recovery
By early 2008, trustee Larry D. Compton had initiated 618 legal actions against investors who had profited from dealings with World Plus, successfully recovering $18.2 million. Partial reimbursements were then distributed among 697 identified investors impacted by Bonham’s collapse.
External links
- World Plus Creditor Information Site managed by Larry D. Compton