Part 4/8:
The Scheme Unveiled
The crux of Champion-Cain's operations involved high-interest loans that she advertised as necessary for securing liquor licenses for budding restaurateurs. Supported prominently by investor Kim Peterson, her fund attracted both retail investors and institutional capital, quickly amassing nearly $400 million. However, unbeknownst to many, these loans never materialized; most were not backed by any legitimate investment activity. Instead, they relied on a Ponzi scheme structure that showcased the signs of impending collapse.