Category Archives: investment fraud
Fort Myers Pair Plead Guilty to Criminal Ponzi Scheme
On Dec. 8, the United States Attorney’s office in Miami announced two Fort Myers residents had pleaded guilty to criminal charges in connection with a real estate-based Ponzi scheme. According to prosecutors, Barry J. Graham and Ricky Lynn Stokes took approximately $300 million from 1,400 investors over a four-year period. Graham, Stokes and three… Read More »
Prosecutors Extradite Accused Ponzi Scheme Operator from Brazil to Florida
On Dec. 8, former Miami Beach concert promoter Jack Utsick made his first appearance in federal court on eight counts of mail fraud related to a Ponzi scheme he ran for nearly 10 years. Utsick previously settled civil charges with the U.S. Securities and Exchange Commission related to the scheme. But four years ago,… Read More »
Understanding “Master Limited Partnerships”
“Master limited partnerships” are a complicated-sounding investment. And with good reason. MLPs are often advertised as can’t-miss, low-risk securities, but the truth is many investors simply do not understand how they work. A master limited partnership—officially called a “publicly traded partnership” by the Internal Revenue Service—basically combines the legal structure of a limited partnership… Read More »
WSJ Warns Florida Seniors About Broker Free Lunch Seminars
The Wall Street Journal recently analyzed where most of nation’s estimated 630,000 stockbrokers work and found at least five “hot spots” in Florida alone. The Journal identified Palm Beach County as having “one of the highest rates of troubled brokers” in the country, largely due to the presence of a high number of persons… Read More »
SEC Charges Ex-CEO With Leaking Confidential Information to Restaurant Manager
On Nov. 21, the U.S. Securities and Exchange Commission announced two men had agreed to settle insider trading charges related to the buying and selling of shares of GenTek, Inc., a company that produces chemical products and engine components. Prior to its 2009 acquisition by a private equity form, GenTek was publicly traded on… Read More »
Federal Prosecutors Charge Operator of Bitcoin Ponzi Scheme
On Nov. 6, the United States Attorney’s office in Manhattan charged Trendon Shavers with securities fraud in connection with his defunct Bitcoin Savings & Trust, an alleged Ponzi scheme targeting users of the popular virtual currency Bitcoin. Shavers was arrested at his home in Texas. Back in August, a federal judge rejected Shavers’ argument… Read More »
SEC Attacks Social Media-Based Investment Schemes
On November 12, the U.S. Securities and Exchange Commission announced administrative charges against two Indian nationals who allegedly ran a “high-yield investment scheme” designed to lure customers through social media. According to an SEC order, the Commission’s Division of Enforcement believes the two men utilized a highly trafficked website, together with YouTube, Twitter, Facebook… Read More »
Top Firms Settle with SEC over Puerto Rican Junk Bonds
The U.S. Securities and Exchange Commission announced this week that 13 top financial firms have settled charges against them alleging that they inappropriately sold Puerto Rican junk bonds to retail investors. The firms, including Charles Schwab, JP Morgan, and UBS, have all agreed to pay penalties ranging between $54,000 and $130,000, without admitting any… Read More »
Arrest Made in $1.2 Million Retirement Fraud Against Florida Seniors
CBS Miami is reporting this week that 4 arrests have been made in a $1.2 million money laundering scheme that left at least 17 elderly people from all over the country with significantly less in their retirement accounts. Working together, the Florida Attorney General Pam Bondi’s Office, the Florida Office of Financial Regulation and… Read More »
SEC Provides Hedge Fund Data to Congress
In 2010, in response to the 2007–2008 financial crisis, the federal government passed the Dodd-Frank Wall Street Reform and Consumer Protection Act. Dodd-Frank made a number of important changes to financial regulation in the United States, including to reporting requirements of private funds like private equity funds or hedge funds. Private equity typically involves… Read More »
