Two Colorado Advisers Arrested for Securities Fraud
According to Colorado securities regulators, two men have been arrested in unrelated securities fraud cases. Eddie Johnson of Sterling, Colorado was taken into custody after he was indicted on seven counts of securities fraud and four counts of theft. He is accused of soliciting $162,000 and a car valued at $30,000 from people who believed […]
FINRA December 2015 Disciplinary Actions: Part III
Denny P. Darmodihardjo (Roswell, GA) submitted an AWC in which he was assessed a deferred fine of $25,000 and suspended from association with any FINRA member in any capacity for 18 months. FINRA found that he engaged in excessive and unsuitable trading in a customer’s accounts. The findings stated that Darmodihardjo made recommendations for the accounts […]
Canarsie Capital Founder Pleads Guilty To Fraud, Lost $57M In Two Weeks
Owen Li, founder of Canarsie Capital, managed to lose $57 million in only two weeks, leaving his investors with only $200,000 and a letter of apology. Li is now also a convicted felon after admitting that he lied to investors and regulators about his hedge fund’s performance. He managed to do all of this before […]
CEO Hated For Price Hiking HIV Drug Charged With Securities Fraud
Martin Shkreli, the hedge fund manager and drug company CEO who rose to infamy after gouging the price of a life-saving pill from $10.50 to $750, has been charged with securities fraud. The FBI arrested Shkreli at his home in Manhattan. He is being processed at FBI headquarters in New York and is expected to be arraigned […]
New Jersey Woman Pleads Guilty To $1.2M Securities Fraud
An ex-New Jersey Investment Adviser pleaded guilty to 31 of 37 charges in two indictments brought against her in 2012 and 2013 for operating a $1.178 million Securities and Annuities fraud scheme, announced the New Jersey Attorney General’s Office and the Office of the Insurance Fraud Prosecutor. Janet Fooshee admitted to falsifying and sending more […]
Texas REIT Plummets Following Ponzi Allegations
Stock in United Development Funding IV has gone into a free fall following a report published on an investor website that alleged the real estate investment trust has operated for years like a Ponzi scheme. Harvest Exchange, an online professional network for investors, published an anonymous post about UDF called “A Texas-Sized Scheme: Exposing the […]
Indiana Developer Pleads Guilty To Securities Fraud
Cornelius Alig, an architect and real-estate developer from Indianapolis, Indiana, allegedly received thousands of dollars from victims through promissory notes he was unable to pay. Alig was charged earlier this year with twenty felonies, including several counts of securities fraud, forgery and theft, following a lengthy grand jury investigation. He pleaded guilty this week to […]
FINRA Charges Cantone Research Inc.’s President With Fraud
FINRA filed a complaint against Cantone Research Inc. (“CRI”) of Tinton Falls, New Jersey and its President, Anthony J. Cantone, charging fraud in connection with the sales and subsequent extensions of more than $8 million of certificates of participation (“COP”) in five promissory notes. The complaint alleges that four of the five pertinent promissory notes […]
Hedge Fund Manager Who Faked Death Guilty Of Fraud
Mark Malik, a New York hedge fund manager who once feigned his own death to avoid repaying an investor, was found guilty of fraud after a two-week trial in New York state court. Malik was convicted by a jury of all 28 counts, including grand larceny and securities fraud. He will serve up to twenty […]
Madoff Victims Receive Biggest Payout In Years With Checks For $1.1M
Bernard Madoff’s victims are getting big checks as the trustee unwinding his fraud sends out $1.2 billion in recovered funds, with checks averaging $1.1 million. This payout is the biggest in over three years and comes a week before the anniversary of Madoff’s December 11, 2008 arrest, when thousands of retirees, charities, investment funds, and other […]