Former UGA Coach Accused of Operating a Ponzi Scheme

‘Expert’ analyses and saw-it-with-my-own-eyes observations are worthless until you have done so.

If you sell a car or a television on Craig’s List and the buyer isn’t happy, there isn’t much he or she can do.  You don’t need a license to sell your old car or your old television, and the damage is limited to the price of what you sold. If you are selling investments that meet the legal definition of a “security,” though, you have to have a license, because the damage you can do by selling securities can last for generations. (more…)

Mavrodi Back At It

Like one or two guys you knew in college, their modus operandi is to proposition every person they meet and simply count on the odds to do their work.

My book contract limited me to 65,000 words. Among the stories of fraud I had to remove from the manuscript of The Vigilant Investor to make that length was the story of Russia’s MMM scam, which, with millions of victims, set a record for the most people defrauded by a single investment scam. Sergei Mavordi, the mastermind of MMM, spent four years in prison. He’s out now. And frequent readers will guess how he’s decided to make his living. According to BSR Russia: (more…)

The Reach of the Russian Mob

Criminals who are bright enough to stay safe in the arms of mother Russia can breathe easy even while their faces grace the FBI’s Ten Most Wanted list.

In The Vigilant Investor, I tell the story of Simeon Mogilevich who masterminded an enormous pump and dump scam in the United States without ever leaving the comfort of his various eastern European homes. In a recent filming of an Investor’s Watchdog University video, I mentioned the impact of the Russian mob on U.S. securities markets. Now comes word that the FBI has identified another scam run by Russian crime figures. According to Bloomberg BusinessWeek: (more…)

A Russian Wake Up Call

The Commission’s complaint alleges that BroCo Investments, Inc., its president Valery Maltsev, and/or individuals acting in concert with them hijacked the online brokerage accounts of unwitting investors using stolen usernames and passwords and subsequently placed unauthorized trades through the compromised accounts to manipulate the markets of at least thirty-eight issuers between August 2009 and December 2009.

The U.S. Securities and Exchange Commission (“SEC”) has filed an emergency enforcement action against a Russian company and its president, charging them with hijacking investor brokerage accounts for use in a market manipulation scheme.  The SEC’s press release described the alleged scam: (more…)

Lessons from the Brainy Don

On Friday we brought you the story of Semion Mogilevich, the latest addition to the FBI’s list of Most Wanted Fugitives.  From his headquarters in Russia, Mogilevich pulled off a $150 million financial scam right here in the United States.  Today we take a look at one of the things that made Mogilevich’s scam so successful.  According [...]

On Friday we brought you the story of Semion Mogilevich, the latest addition to the FBI’s list of Most Wanted Fugitives.  From his headquarters in Russia, Mogilevich pulled off a $150 million financial scam right here in the United States.  Today we take a look at one of the things that made Mogilevich’s scam so successful.  According to the CNN report on the scam, Mogilevich, who has an Economics degree: (more…)

 

SEC Accuses Russian Company of Hijacking Customers’ Online Brokerage Accounts

The United States Securities and Exchange Commission has charged a Russian company, Pointer Worldwide Ltd and its officer, Tatiana Badmaeva, with hijacking the accounts of online brokerage customers and using the innocent customers’ accounts to buy and sell stocks in furtherance of a pump and dump scheme.

The United States Securities and Exchange Commission has charged a Russian company, Pointer Worldwide Ltd and its officer, Tatiana Badmaeva, with hijacking the accounts of online brokerage customers and using the innocent customers’ accounts to buy and sell stocks in furtherance of a pump and dump scheme.

(more…)

 
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