Yacht Broker arrested...

Not the first one to do this but certainly a bad situation.

That's not a ponzi scheme. That's just a dumb ass stealing money.

By definition if he's using new money to repay old , it's a Ponzi scheme.

from the article:
Detectives concluded that Taylor operated the business as a Ponzi scheme in that he would take money from investors and promise a high return; he would then take money from boat buyers or other investors and pay back the initial investors.

How do the victims fair? Where are the Azimuts, electronics and motors. Who pays them back? If the money was in escrow account and Florida law defines escrow, is the bank on the hook for any of this. Are the banks liable for allowing the accused to use escrow accounts for other than they were intended?

Makes you want to use 3rd party escrow services.

Crazy. Handing a $600k check to a broker whose escrow account bond is what, $20k?

Last boat I sold in 2010, the buyer's bank was going to wire the purchase loan proceeds to the buying broker. I had them wire it directly to me, the seller. Sure enough, the buyer's broker vanished with the buyer's deposits and slip prepayments.

3rd party escrow services are a must and you should insist that the 10% down payment gets deposited at the escrow company as well.