Archive for the ‘New York’ Category

SEC Charges Alleged Boiler-room Operation

Tuesday, July 14th, 2009

The Securities and Exchange Commission has charged Sky Capital LLC a/k/a Granta Capital LLC with using fraudulent boiler room tactics to raise more than $61 million from investors in two related companies — Sky Capital Holdings Ltd. and Sky Capital Enterprises, Inc. (the Sky Entities). The Commission also charged Sky Capital’s founder, former President and CEO, Ross Mandell, the firm’s former COO, Stephen Shea, and four registered representatives, Adam Harrington Ruckdeschel, Arn Wilson, Michael Passaro, and Robert Grabowski, for orchestrating and participating in the fraudulent scheme designed to fraudulently induce numerous individuals to invest in the Sky Entities.


Don’t Wait Until Checks Bounce

Wednesday, July 1st, 2009

An article in The Rochester Democrat and Chronicle, by Gary Craig, brings to light another alleged oil and gas scam that raised more than $16 million from investors.  According to court documents, Ashvin Zaveri and his company Zaveri Oil & Gas, Ltd, are under investigation for defrauding investors, but no charges have been filed against Zaveri at this time.  (more…)

Believing a Lie?

Monday, June 29th, 2009

The Securities and Exchange Commission (SEC) charged Michael C. Regan and his firm, Regan & Company, for conducting a multi-million dollar Ponzi scheme and fraudulently raising over $15.9 million, and causing investors to lose at least $6.69 million through misappropriation and trading losses. (more…)

Is There A Safer Bet Than Assuming?

Tuesday, January 27th, 2009

It’s hard to know if your money is where your broker tells you it is.  And after all the scams hitting the news in the past few months, the thought is more frightening than ever.  But to the un-trained eye, how would you know what to look for on your statements? And if you’re receiving interest payments, then it’s safe to assume that everything is ok, right? 

Investors in Gen-See Capital Corp probably assumed so.  They believed that President and Owner, Richard S. Piccoli, had invested their money in “high quality” mortgages, as he said.  They also had no idea that the “return” they were receiving was actually being paid by new investor money.          (more…)

Madoff 3 - ‘Smart’ Choices

Wednesday, December 17th, 2008

It will be hard for Bernard Madoff to think of himself as smart when he’s sitting in a cell in a federal penitentiary.  And no one who has a heart for the victms of schemes like his can admire anything about his fraud.  But, among the community of scam artists, his scheme has, no doubt, attracted admirers who will learn from Madoff’s example.  (more…)

Madoff 2

Monday, December 15th, 2008

Bernard Madoff’s $50 billion Ponzi scheme may have ripples all over the world.  It will be months, if not years, before it fades from the headlines.  Let us hope that the size of the scam does not lead people to write it off as a once-in-a-lifetime event, akin to the current worldwide financial collapse.   (more…)

Honesty Is Not Everyone’s Policy

Tuesday, December 9th, 2008

The Securities and Exchange Commission (SEC) has charged Marc Dreier with raising at least $113 million from the sale of bogus promissory notes. According to the complaint, Dreier is the founder and managing partner of Dreier LLP. 

According to the complaint, since October 2008, Dreier allegedly sold fake promissory notes to three investors and a former client of Dreier LLP. (more…)

Norman Hsu Back in the News

Thursday, October 9th, 2008

When Investor’s Watchdog began blogging, the name Norman Hsu was on the lips of every conservative talk radio host.  A substantial contributor to the campaign of Senator Hillary Clinton, Hsu was a very successful scam artist.  After skipping a court appearance and attempting suicide on a cross country train trip, Hsu was arrested at the hospital after having his stomach pumped.   (more…)

SEC Charges Former CEO with Two Fraudulent Schemes

Tuesday, September 2nd, 2008

The SEC has charged Jeffrey Fishman, former CEO of One Liberty Properties, Inc. (OLP) with raising $940,000 from seventeen people for supposed investment in a company Fishman created, purportedly to invest in foreign currency options.  Rather than invest in currency options, the SEC claims that Fishman spent $609,000 on personal expenses and to gamble.  In addition, the SEC charged Fishman with accepting almost $1 million in kickbacks from two of OLP’s commercial partners. (more…)

The Cover-Up

Wednesday, May 28th, 2008

A recent case from the Securities and Exchange Commission underscores how even initially well-intentioned brokers and investment managers can cause baby boomers and seniors severe losses.  The change, from well-intentioned broker to severe threat to a clients’ nest egg, flows from a single decision.    (more…)