Investors allege that a New York man defrauded them out of significant amounts of money. This is despite his personal claims of investing success in relatively little time, but investigators say that the man admitted some of the alleged fraud to at least two investors when they tried to get their money back. He was recently charged with wire fraud and securities fraud.

According to authorities, the 70-year-old claimed that he had managed to generate returns of 362% through day trading in under five years. However, those claims may have been exaggerated or possibly fabricated. Investigators believe that the man actually engaged in very little trading and, when he did, frequently lost money.

He allegedly told investors that he used a proprietary algorithm, which he said was the secret behind his success in investing. According to him, the algorithm was so accurate that he went years before experiencing even a single monthly loss. This claim is what encouraged many investors to purchase interests in his limited partnership. He apparently used the money from that limited partnership to finance his personal expenses, including jewelry, a vacation rental and custom kitchen cabinets.

Securities fraud charges are quite serious and the consequences can be severe. Defendants in New York may face years of jail time, steep fines and loss of chosen careers. Addressing these charges in a timely manner can be overwhelming, but doing so is often essential to achieving the best possible outcome for an individual's unique situation. An experienced attorney can usually provide insight on how to begin this process for those who are unsure of where to start.

No Comments

Leave a comment
Comment Information
Contact Timothy J. Dennin

Secure Case Evaluation

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

map-1

Northport Office:
316 Main Street
Northport, NY 11768

Toll Free: 866-437-9475
Fax: 631-261-0395
Northport Law Office Map

Manhattan Office: 
270 Madison Avenue
13th Floor
New York, NY 10016

Toll Free: 866-437-9475
Fax: 212-688-6457
New York Law Office Map

map-2