Best Buy Faces $2.65 Million Lawsuit Over Alleged Ponzi Scheme

Six business investors sued Best Buy Co. in federal court in New Jersey on Tuesday, claiming the retailer engaged in fraudulent conduct and misrepresentations that caused them to invest more than $2.6 million in a fake delivery and installation business.

The investors, led by Rafi Gibly, say they were persuaded to invest in “sham businesses” that purported to provide delivery and installation services for Best Buy but were actually part of a Ponzi scheme. Gibly says Best Buy “validated” these investments by providing private, guided tours of a restricted distribution center during which Best Buy employees corroborated claims made in ...