Man arrested for securities fraud due to alleged Ponzi scheme


Investors in New York, across the nation and its territories, are constantly searching for strategies to maximize their investments. In some instances, they are offered a financial opportunity that sounds like it has a good chance of succeeding. It may even appear to be too good to be true.

Unfortunately, in the securities industry, there are occasions in which investors seeking to maximize their investments are steered into investments that offer a unique or special “opportunity” by unscrupulous financial advisors who are actually engaged in a Ponzi scheme or hybrid Ponzi scheme. People who have been victimized by securities fraud and lost money should be cognizant of their rights to recover their investment.

Alleged Ponzi scheme results in man’s arrest

A Pennsylvania man was arrested for various forms of fraud after taking money that unsuspecting investors gave him and using it for his own entertainment. The 29-year-old fraudster and an accomplice began the scheme in his apartment. He told potential investors that he was an investment adviser and was given more than $3 million. Individually, investors gave him around $240,000 each. He diverted one-third of it from the firm and bought such items as automobiles, motorcycles, jewelry and weapons.

He consistently sought new investors, and when they gave him money to invest, he paid back the previous group of would-be investors – otherwise known as a Ponzi scheme. He sent people false account statements to hide what he was doing. He began his so called “investment company” in July 2016.

In August 2018, he had been warned by the state authorities to stop selling and portraying himself as an investment adviser. He continued through this past February.

The investors were told they would get a 25% minimum return on what they invested. He did invest more than a half-million dollars but lost around 20% of it. People who invested with him lost more than $2.1 million.

It can be shocking and worrisome when a person who placed their trust in an investment adviser discovers that they were funding a Ponzi scheme. One of the most prominent concerns is whether they will be able to recoup their investment.

It may seem like an impossible task. Still, there are ways to investigate the circumstances and take the necessary steps to get the money back.