The government said Friday it obtained a court order to halt an alleged $34 million Ponzi scheme targeting federal employees and law enforcement agents nationwide with promises of safe investments in a nonexistent bond fund.The Securities and Exchange Commission said the order issued Thursday by a federal judge in Miami also froze the assets of the estate of the late Kenneth Wayne McLeod, his consulting firm Federal Employee Benefits Group of Jacksonville, Fla., and an affiliated investment firm.
Posts Tagged ‘Federal Judge’
SEC halts alleged $34M Ponzi scheme
June 25th, 2010 
Before You Invest 
Posted in Finance Fraud 
Tags: Asset Management Group, Benefit Analyses, Bond Fund, Civil Complaint, Consulting Firm, Employee Benefits Group, Federal Employee Benefits, Federal Judge, Government Bond, Government Bonds, Investment Firm, Jacksonville Fla, Lavish Entertainment, Ponzi Scheme, Retired Federal Employees, Retirement Benefit, Retirement Benefits, Retirement Savings, Securities And Exchange Commission, Wayne Mcleod 
Comments Off‘World’s tallest’ developer gets 64-months in prison
April 17th, 2010 Before You Invest (Crain’s) — A federal judge on Thursday sentenced Scott K. Toberman to five years and four months in prison in connection with the developer’s admitted scheme to embezzle about $2 million from investors.As a high-flying developer in the late ‘90s, Mr. Toberman made a fanciful proposal to build the world’s tallest building in downtown Chicago.
Posted in Finance Fraud Tags: Change Of Heart, Court Appointed Attorney, Criminal Case, Dearborn St, Downtown Chicago, Federal Judge, Four Months, International Celebrity, John L Sullivan, Litigation, Mr Sullivan, Plea Agreement, Proposal, Sentencing Hearing, Smyrna Ga, Spokesman, Story Skyscraper, Tallest Building, Winnetka, Wire Fraud Comments OffFraud Defendant Lands in Jail for Failure to Comply with Court Order
January 27th, 2010 Before You Invest Earlier this week Trevor G. Cook, a onetime money manager charged with operating a foreign currency trading scheme, was jailed for being in contempt of court. A federal judge in Minnesota had been trying to enforce an order granted to the Securities and Exchange Commission (SEC) forcing Cook to hand over more than $35 million in assets when Cook’s unwillingness to comply landed him in jail.
Posted in Finance Fraud Tags: Assets, Chicago Regional Office, Contempt Of Court, Defendant, Faberge Eggs, Federal Judge, Foreign Currency Trading, Fraud, Gillete, Investor, Luxury Cars, Money Manager, Offshore Accounts, Radio Host, Securities And Exchange, Securities And Exchange Commission, Securities Products, Selling Unregistered Securities, Shell Companies, Submarine Comments OffChicago lawyer gets 7 years for role in Refco fraud
January 15th, 2010 Before You Invest (AP) — A Chicago lawyer was sentenced to seven years in prison Thursday by a federal judge who said his excessive loyalty to Refco Inc. led him to help the huge commodities brokerage carry out a $2.4 billion fraud.Attorney Joseph P. Collins, 59, of Winnetka, was sentenced by U.S. District Judge Robert P.
Posted in Finance Fraud Tags: Charitable Acts, Chicago Lawyer, Chicago Schools, Commodities Broker, Commodities Brokerage, Critical Player, Defendant, District Judge, Federal Authorities, Federal Judge, Federal Sentencing Guidelines, Fraud Lawyer, Frauds, Greed, Judge Robert, Mid 1990s, Prison Term, Refco Inc, University Of Notre Dame, Winnetka No Comments »This Day in Wall Street History 1987: Boesky is sentenced
December 18th, 2009 Before You Invest The hammer finally came down on Ivan Boesky on this day in 1987, as Federal Judge Morris E. Lasker sentenced the once-mighty arbitrageur to a three-year prison term. Boesky, who had been one of the wealthiest and most-powerful players on Wall Street, was found guilty of insider trading, as well as a series of sizable but shady transactions — crimes that constituted what The Wall Street Journal deemed the “largest scandal in Wall Street’s history.” While Lasker chided Boesky for committing offenses “of the highest seriousness,” the arbitrageur cushioned his fall by agreeing to implicate other firms and figures suspected of securities crimes.
Posted in Finance Fraud Tags: 100 Million, Arbitrageur, Crime Fighter, District Attorney, E Lasker, Eyebrows, Federal Judge, High Profile, Insider Trading, Ivan Boesky, Mayor Of New York, Mayor Of New York City, Political Ambitions, Profile Wall, Rudolph Giuliani, Scandals, Seriousness, Source History, Wall Street History, Wall Street Journal No Comments »Madoff Auditors Consent to Partial Judgment According to Securities and Exchange Commission
November 4th, 2009 Before You Invest The Securities and Exchange Commission today announced that Bernard Madoff’s auditors have agreed not to contest the SEC’s charges that they enabled Madoff’s fraud by falsely stating they audited the convicted fraudster’s financial statements in accordance with the relevant accounting and auditing standards.On November 3, 2009, the SEC submitted to the Honorable Judge Louis L.
Posted in Finance Fraud Tags: Accounting Principles, Audit Reports, Auditing Standards, Bernard Madoff, Consents, David Horowitz, Disgorgement, Federal Judge, Federal Securities Laws, Financial Statements, Fraudster, Gaap, Honorable Judge, Injunctions, Investment Securities, Permanent Injunction, Ponzi Scheme, Securities And Exchange Commission, Southern District Of New York, Today Announced That No Comments »Feds pursue fund manager they say stole $1M
October 31st, 2009 Before You Invest A federal judge froze the assets of an $8.3-million Chicago-based hedge fund after a federal regulator sued the fund’s manager for misappropriating $1 million from his investors.Richmond H. Hamilton Jr., who manages Raleigh Capital Management Inc. from his home in Morocco, diverted the money to pay for personal expenses including an airplane and the lease on a car in the U.S., according to a complaint filed Wednesday in Chicago by the Commodity Futures Trading Commission.
Posted in Finance Fraud Tags: 1m, Affidavit, Airplane, Capital Management Inc, Cftc, Commodity Futures Trading Commission, Federal Judge, Federal Regulator, Feds, Futures Trading Commission, Hamilton Jr, Hedge Fund, Investor Complaint, Mr Hamilton, National Futures, Personal Expenses, Real Estate Sales, Regulators, Sham, Withdrawals No Comments »Bank of America’s $2bn lawsuit against Bear Stearns set for court
October 2nd, 2009 Before You Invest A Bank of America lawsuit against Bear Stearns and two of its hedge-fund managers will go ahead after a federal judge refused to dismiss contract and fraud claims.Bank of America is claiming more than $2 billion in hurts, alleging that Bear Stearns’s hedge fund losses were hidden from it, causing it significant losses as the value of the assets and the securities fell dramatically.Hedge-fund managers Ralph Cioffi and Matthew Tannin are set to go on trial on October 13th 2009 in New York for their part in the alleged fraud.The collapse of Bear Stearns’s hedge funds in 2007 led to the investment bank’s dramatic downfall that saw it sold to JPMorgan Chase & Co in May 2008 for just $10 a share.Staff at the company, who owned nearly 40 per cent of the shares between them, lost billions of dollars on their holdings, which had been trading at more than $150 a share in early 2007.
Medical Capital Moves Towards Bankruptcy Filing
August 19th, 2009 Before You Invest The officers of Tustin lender Medical Capital Holdings questioned a federal judge Monday to let the company file a Chapter 11 bankruptcy reorganization.U.S. District Judge David O. Carter said he probably would refuse. But he gave the company and the Securities and Exchange Commission a week to make their cases.
Posted in Finance Fraud Tags: Accelerator, Bankruptcy Reorganization, Capital Assets, Capital Moves, Chapter 11 Bankruptcy, Court Session, Courtroom, District Judge David, Federal Judge, Investor Funds, Life Sciences, Linear Accelerator, Medical Capital, Medical Receivables, Nuclear Power Plant, Reluctance, Seaman, Securities And Exchange Commission, Wells Fargo, Wells Fargo Bank No Comments »Medical Capital Investors Suffer Losses
August 18th, 2009 Before You Invest A Santa Ana federal judge barred Medical Capital Holdings Inc. from selling additional securities in an offering that has raised at least $76.9 million, in response to a complaint alleging fraud against the Tustin company filed by the Securities and Exchange Commission.In addition to prohibiting the financial services company from taking in more investor money, U.S.
Posted in Finance Fraud Tags: 5 Million, Accounting Services, Accounts Receivable, Backers, Bookkeeping, Capital Investors, Court Documents, District Judge David, Federal Judge, Healthcare Providers, Investor Dollars, Investor Money, Medical Capital Corp, Medical Provider, Principal And Interest, Santa Ana, Secured Loans, Securities And Exchange, Securities And Exchange Commission, Special Purpose No Comments »
