Controversies
Controversies tied to this brand in public sources. A listing is not a finding of fault.
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1993
Towers Financial Ponzi scheme
Between 1988 and 1993, Towers raised more than $400 million through bonds and promissory notes while allegedly using new investor money to repay earlier investors and cover company expenses. The scheme affected thousands of investors and was described as the largest financial fraud in the United States before the discovery of Bernie Madoff's operation.
1993
False financial reporting allegations
The SEC alleged that Towers reported a $13 million profit for the four years ending June 30, 1991, despite an actual loss of approximately $137 million.