Woman arrested for securities fraud scheme


Authorities claim that a woman purposely lied to investors about the purposes of her investment fund as well as its performance. Accused of committing securities fraud, she allegedly ran a $100 million scheme that affected many different investors. It can be extremely distressing when a New York investor learns that his or her funds have been purposely misused, but there are options for moving forward and seeking compensation.

The 59-year-old woman ran the investment scheme between Feb. 2016 and Aug. 2019. During that time, she collected approximately $100 million from various investors. She allegedly convinced these individuals to invest in her company by providing false information, such as a falsified summary that showed positive returns. However, authorities say the company’s brokerage accounts had actually lost around 50% of their value.

All too often the purpetrators of this kind of activity do not have sufficent assets to compensate the victims. TIMOTHY J. DENNIN, P.C. has uncovered numerous ponzi schemes and has succesfully sued the broker dealers employing the individual fraudsters and recovered millions for such victims. 

Instead of investing the victims’ money as promised, she apparently diverted a significant portion out of the company. These funds were used for unauthorized purposes, such as providing what appeared to be returns to different investors. When one of the victims submitted a redemption request, she was unable to pay even a portion of the requested $46 million. She supposedly provided false excuses as to why she could not pay.

The potential criminal consequences for securities fraud are steep, and include millions of dollars in fines and decades behind bars. While victims might feel relieved to see these individuals face consequences for their actions, it may not be enough. In New York, it is possible to file a lawsuit in order to pursue compensation for money lost through securities fraud.