White Paper

SEC Cracking Down on Ponzi Schemes

 

Federal judge grants bid by the SEC to force former head fund manager to pay nearly $27 million for role in Ponzi scheme.

According to the court’s order, the mastermind behind an elaborate five-year scheme tried to cover up a $5 million investment loss. Rather than disclosing this loss to investors, he tried to make enough money to eventually cover the loss. He was unsuccessful and mismanaged funds of close to $30 million.