RSS Feed
New York, NY - Investment Advisor Sentenced To 8 Years In Prison For Ponzi Scheme |
|
| |
Text Size
|
HR 44 of Manhattan, was convicted on securities and wire fraud charges on April 3, 2009, following a five-day jury trial. United States District Judge imposed the sentence today in Manhattan federalcourt.
As established by the evidence at trial and statements made during today's sentencing proceeding:
From 2004 to September 2007, HR raised money from investors by representing he would invest their funds in one of two ways: by investing in foreign initial public offerings that would purportedly deliver returns of between 5 percent and 15 percent, with little or no risk; and by lending invested funds to trading firms that would use the funds merely as collateral and that would purportedly return a high fixed annual rate of return of up to 18 percent, subject only to the low risk that a trading firm might collapse.
In fact, HR made no such investments. Instead, he invested and lost large portions of investor money in highly speculative and risky trading, such as domestic options trading, completely unrelated to the investment strategies he represented he would employ; he also diverted significant amounts of investor funds to himself and his relatives. HR also paid out to earlier investors monies he took in from later investors, thereby perpetrating a Ponzi scheme. Late in the course of his scheme, when some investors demanded that he prove where their money was located, HR provided a forged bank statement purporting to show he had approximately $9 million of investor funds in his bank account. In fact, the account contained only approximately $9,000. HR scheme caused investor losses totaling more than $13 million between 2004 and September 2007.
In addition to the prison term, the Judge ordered that HR pay almost $13.5 million in restitution to the victims of the crime.
HR served as a gabbai, to the rabbi of Congregation Ohab Zedek, in Mahnattan
More of today's headlines
“Chicago, IL - A Chicago couple married in surgical masks and latex gloves after learning less than 48 hours before that they both had swine flu. Ilana Jackson and...”
Chicago, IL - Couple with Swine Flu Marries in Masks
Monrovia, CA - Trader Joe's Retail Chain Defies Boycott Call Against Israeli Products
Total8
Read Comments (8) — Post Yours »
1
Jun 19, 2009 at 04:39 PM Anonymous Says:
No different than the Mesira mentioned in the Torah! Ai he was a Ganef? Thats why there is a Din Vcheshbon after 120.
2
Jun 19, 2009 at 05:12 PM Anonymous Says:
“ No different than the Mesira mentioned in the Torah! Ai he was a Ganef? Thats why there is a Din Vcheshbon after 120. ”
If he paid old investors a new investors money isn't there a clawback?why is he responsible for all $ 13M?
3
Jun 19, 2009 at 05:04 PM Anonymous Says:
L'malshinim al t'hi tikva
4
Jun 19, 2009 at 05:39 PM authenticSatmar Says:
Didn't Merril Lynch and Lehman do the same thing? How come no one got arrested?
5
Jun 19, 2009 at 05:47 PM Anonymous Says:
“ If he paid old investors a new investors money isn't there a clawback?why is he responsible for all $ 13M? ”
I was not saying he was a Ganef! I was saying if these people who think they went after so called "Das Torah" thought he was a Ganef.......
6
Jun 20, 2009 at 09:46 PM Anonymous Says:
“ No different than the Mesira mentioned in the Torah! Ai he was a Ganef? Thats why there is a Din Vcheshbon after 120. ”
You obviously dont know any Halachos. This is the only way they can get their money back. There are many T'shuvos permitting locking up Ganavim. They are a danger to society. What about pedophiles? Is that also Mesira?
7
Jun 20, 2009 at 11:59 PM the emes Says:
Now that we can all see this guy was a crook and used his position and relationships to steal from people - it should be noted by all that they must not allow crimes to go without prosecution. if anyone knows of such things they must contact thier rebbe to make sure the community can take appropriate steps so others are not also harmed.
8
Jun 21, 2009 at 01:47 AM Anonymous Says:
the social security system works the same way you take money from new 'investers' to pay of old 'investers' and like all other ponzi schemes its gonna go bust sooner or later!!