Kannapolis couple indicted in PIPS Internet scam

Wednesday, October 08, 2008 3:00 AM  |  Printer friendly version | E-mail to a friend | By Jessie Burchette

jburchette@Salisburypost

A Kannapolis couple have been charged in what officials have described as an Internet scam that took more than $40,000 from 11 investors.

A Rowan County grand jury has indicted Sammy Biggerstaff, 60, and his wife, Shelia Biggerstaff, 59, of 8940 Wright Road, on 11 felony counts of obtaining property by false pretense.

The Biggerstaffs were arrested on Sept. 27 and released on a written promise to appear in court.

Contacted by the Post, Shelia Biggerstaff said they have no comment.

Local and state agencies began investigating the couple in September 2005 when 10 people contacted the Rowan County Sheriff's Office and said they had given the Biggerstaffs money to invest in a PIPS program.

According to investigators, the couple told potential investors their money would earn interest at a rate of 2.5 percent per day to be compounded daily.

In one case, a Kannapolis woman was told that "a $465 investment would make you a millionaire in three years," Detective Jody Burleyson said in a sworn statement.

The State Bureau of Investigation and agents from the N.C. Secretary of State's office also participated in the investigation.

In November 2005, deputies and state agents raided the Biggerstaff home on Wright Road and seized a computer and numerous documents.

Capt. John Sifford said Tuesday this is one of the more complicated cases he has seen in his 20 years with the Sheriff's Office and "certainly one of the most complicated investigations."

"The Internet is a new frontier for scams," Sifford said. "If it sounds too good to be true, it probably is."

Investors gave amounts ranging from $1,000 to $5,250 to the Biggerstaffs, according to statements filed at the clerk of court's office.

According to the statements, the Biggerstaffs told some of the investors that PIPS had been operating since 2001 and invested money in the Malaysian stock market through a man named Bryan Marsden.

The Biggerstaffs told one investor Marsden owned PIPS along with several other companies, which included a film production company out of Australia, a children's Bible book printing company, an investment firm, a global real estate company and a nonprofit charity organization.

PIPS is variously identified as People in Profit Systems, Private Investment Profit System, Pureinvestory, and PIPS Financial Services.

In obtaining the search warrant in 2005, Burleyson said the Biggerstaffs knew the PIPS program had not paid out to investors since November 2004 and would have realized the funds in the PIPS account were worthless.

The Biggerstaffs are scheduled to appear in the next session of Rowan County Superior Court.