Archive for the ‘California’ Category

Covered Call Option Strategy a Cover for a Ponzi Scheme

Tuesday, June 30th, 2009

 

The Securities and Exchange Commission (SEC) has charged Moises Pacheco, of Chula Vista, California, and his companies, Advanced Money Management, Inc. (AMM), and Business Development & Consulting Co. (BD&C), with securities fraud.  According to the SEC, Pacheco used five self-styled hedge funds - AP Premium Value Funds I through IV and Capital Partnership Group, to raise $14.7 million from more than 200 people.  Also according to the Commission, Pacheco’s used principal invested by later investors to pay supposed profit distributions to earlier investors, in classic Ponzi fashion. According to the SEC’s complaint: 

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Affinity Fraud and a Ponzi Scheme

Friday, June 19th, 2009

The Securities and Exchange Commission (SEC) has charged two California men, Peter C. Son and Jin K. Chung, with running an $80 million Ponzi scheme that targeted Korean-Americans.  (more…)

SEC Stops Another Long Con

Monday, May 11th, 2009

The U.S. Securities and Exchange Commission has stopped a hedge fund fraud in Beverly Hills, California.  The scam raised $38 million from just 20 investors, making it a good example of “the long con” - a con designed to steal big amounts from a limited number of people.  Specifically, the SEC alleges that Bradley L. Ruderman (”Ruderman”) raised at the money through two hedge funds - Ruderman Capital Partners and Ruderman Capital Partners A.  “The SEC alleges that Ruderman defrauded his hedge fund investors by misrepresenting to them the hedge funds’ investment returns and the assets under management.” (more…)

Off the Menu

Wednesday, April 8th, 2009

The U.S. Securities and Exchange Commission (SEC) has closed down another alleged Ponzi scheme.  Specifically, the SEC has charged Delilah Proctor, Shauntel McCoy, both of southern California, and their companies - Sun Empire and ECAM, a/k/a Empire Capital Asset Management - with running a diverse series of investment frauds.  According to the SEC’s complaint: (more…)

SEC Halts Another Scheme Targeting Senior Citizens

Friday, March 6th, 2009

The U.S. Securities and Exchange Commission has halted an ongoing alleged financial scheme that victimized hundreds of senior citizens nationwide.  Specifically, the SEC has charged Diversified Lending Group (DLG), Applied Equities, Inc. (AEI), and their principal, Bruce Friedman with securities fraud.  According to the SEC’s complaint: (more…)

Backward Duping

Thursday, March 5th, 2009

According to a great article in TheReporter.com, acting U.S. Attorney Lawrence G. Brown for the Eastern District of California, announced that Robert Cephas Brown Jr. and Duane Allen Eddings are being charged criminally for defrauding hundreds of people out of more than $17 million in a Ponzi scheme.  The U.S. Securities and Exchange Commission (SEC) also filed a civil lawsuit also alleging securities fraud. (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 Shuts Down Bogus PIPE Promoters

Wednesday, September 24th, 2008

The U.S. Securities and Exchange Commission (”SEC”) has charged attorney Jeanne M. Rowzee, James R. Halstead of Santa Ana, Calif., and Robert T. Harvey of Prosper, Texas with promoting a Ponzi scheme structured as a PIPE investment.  PIPE stands for private investment in public equity and is a way for small to medium sized companies to raise capital by selling shares to private investors at a discount to the current market price. (more…)

Again with the Ferrari!

Monday, July 28th, 2008

Scamsters have an affinity for fast cars.  The SEC has found another one, charging investment adviser Robert C. Brown, Jr., of Hillsborough, California, with helping himself to more than $20 million of his clients’ money after promising them risk-free returns through option trading.  Among the things Brown bought with the money was the by-now-cliché Ferrari, as well as limousine services, and shopping trips (probably not at Wal Mart). 

According to the SEC: (more…)

A Good Description of the Typical Ponzi

Tuesday, May 13th, 2008

Marie Vasari and Jim Johnson of the Monterrey Herald have written an article about the aftermath of a Ponzi scheme allegedly operated by David Nilsen and his California-based company - Cedar Funding Inc.  Vasari and Johnson convinced a few investors to talk on the record.  Others were too humiliated to allow the use of their names.  All of them allege that what they thought was a safe investment guaranteeing a return of almost 11 percent was actually an elaborate Ponzi scheme.  Many have lost their entire retirement savings.  (more…)