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North Carolina Man Sentenced In Ponzi Scheme Case

Carl David Wright of Iron Station, North Carolina was sentenced Tuesday to four years imprisonment for operating a Ponzi scheme that defrauded investors out of $1 million. He will remain out on bond until he is ordered to report to federal prison. After serving his sentence, Wright will spend three years on supervised release and pay $817,975 in restitution to his victims. The former middle school teacher operated his scheme by convincing people to invest in Commodity Investment Group out of Cherryville, North Carolina, conning people out of over $1 million from August 2008 to March 2013. Wright is believed to have lied to investors, promising unrealistic returns of up to 20 or 30 percent in a short time period. He also misrepresented to investors that the company would invest their cash in hedge funds, commodities, and Quick Trip convenience stores. Wright, however, failed to invest the cash he received. Instead, he used the money to run a Ponzi scheme, [...]

By |October 31st, 2014|Press Releases & News|
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Alleged Carolina Fraudster Arrested, Arraigned

Robert Dane Freeman, a former investment advisor from Flat Rock, North Carolina, was arrested and arraigned last week, having been alleged to be a co-conspirator in a securities fraud. Freeman is being charged with five felonies pertaining to his participation in a 2008 Global Holdings LLC scheme to sell fraudulent high-yield investments. The scheme generated over $3.5 million from 35 investors. Freeman's alleged co-conspirators include Mark McAdams and Charles Lowell Walker. McAdams is a former Myrtle Beach, South Carolina lawyer who is believed to have used his position at a prestigious law firm to lend plausibility to the scheme. Walker is alleged to have assisted in the recruitment of investors. Each alleged co-conspirator is looking at three charges of wire fraud, one charge of conspiracy to commit wire fraud, and one charge of international money laundering. If convicted, the maximum sentence that each could receive is 140 years imprisonment. The SEC brought a similar suit against McAdams and Freeman in [...]

By |October 14th, 2014|Press Releases & News|
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Three Hedge Fund Managers Sentenced In Ponzi Scheme Case

Three hedge fund managers have been sentenced in a Ponzi scheme case that conned investors out of $40 million. Jeffrey Toft of Sioux Falls, South Dakota received 66 months in prison. Chad Sloat of Kansas City, Missouri received 70 months. And Michael Murphy of Deep Haven, Minnesota received 48 months. All three of their sentences will be followed by two years of supervised release. The judge further ordered that the defendants pay restitution to their victims. Toft will pay $2,172,666, Sloat will pay $3,747,130, and Murphy will pay $2,552,824.30. Sloat will additionally pay $93,727 to the IRS. Jonathan Davey of Newark, New Jersey, a fourth defendant, is currently awaiting sentencing. Judge Conrad stated during sentencing that the defendants exhibited callous greed causing devastating financial ruin to hundred of elderly and vulnerable victims. Conrad also noted that the lengthy sentences were reasonable provided the predatory nature of the scheme. According to court documents, the trio of defendants operated hedge funds as [...]

By |October 6th, 2014|Press Releases & News|
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Judges Declines To Dismiss Principal Investment Groups Excessive Fee Suit

U.S. District Judge John A. Jarvey, an Iowa federal judge, decided not to dismiss a case alleging investment managers Principal Management Corp. and Principal Global Investors, LLC took too much on fees they charged a retirement plan investing in particular mutual funds. Judge Jarvey ruled that American Chemical & Equipment Inc 401(K) Retirement Plan (ACE) had standing under the Investment Company Act (ICA) to initiate a case alleging the investment management groups kept an acquired fund fee that was in breach of their fiduciary duties to investors in a collection of mutual funds, which held $18 billion in assets combined. According to Judge Jarvey, a shareholder in those principal funds, ACE is a security holder of the principal funds within the meaning of ICA and therefore established standing to file the case. In addition, ACE rightfully limited it breach of fiduciary duty claim against the Principal defendants to only those fees collected from principal interest holders and retained by principal [...]

By |September 12th, 2014|Press Releases & News|
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