(AP) — The former president of a Chicago-based private equity firm WexTrust has pleaded guilty to conspiracy and securities fraud, admitting he misspent millions of dollars in investor money.Steven Byers entered the guilty plea in federal court in Manhattan Tuesday. He agreed that millions of dollars raised from investors since at least 2003 was not used as promised.Prosecutors say Byers and others took $9.2 million from investors to buy seven commercial properties but never bought them, using the money instead for other purposes.
Posts Tagged ‘Manhattan’
Ex-WexTrust CEO pleads guilty to fraud
April 13th, 2010 
Before You Invest 
Posted in Finance Fraud 
Tags: 18 Years, Byers, Ceo, Conspiracy, Former President, Guilty Plea, Investor Money, Investors, Manhattan, Oak Brook, Plea Agreement, Prison Term, Private Equity Firm, Prosecutors, Securities Fraud, Wextrust 
Comments OffMore Wore Wires in Bid to Investigate Inside Trades in Galleon Case
March 11th, 2010 Before You Invest The Wall Street Journal- Federal prosecutors in Manhattan equipped several cooperating witnesses with recording devices to try to obtain information about targets in the Galleon insider-trading probe, people familiar with the matter say. Among them is Franz Tudor, a former Galleon Group hedge-fund trader, the people familiar with the matter say. Mr. Tudor, 36 years ancient, made recordings last year in an attempt to extract information from two friends and colleagues who are defendants charged in an insider-trading conspiracy, Zvi Goffer (left) and Michael Kimelman, the people say.more at http://online.wsj.com/article/SB10001424052748704145904575112132401351258.html
Posted in Finance Fraud Tags: Attempt, Bid, Colleagues, Conspiracy, Federal Prosecutors, Fund Trader, Galleon, Galleon Group Hedge Fund, Goffer, Insider Trading, Manhattan, People Online, Targets, Trades, Tudor, Two Friends, Wall Street, Wall Street Journal, Wsj, Zvi Comments OffGuilty Plea in Westgate Capital Ponzi Likely
December 11th, 2009 Before You Invest James Nicholson, a Saddle River hedge fund manager accused of bilking investors of as much as $160 million, has tentatively agreed to plead guilty to charges his Westgate Capital Management LLC was a Ponzi scheme. A plea hearing is set for noon Friday in federal court in Manhattan, according to a court order signed by U.S.
Posted in Finance Fraud Tags: 5 Million, Attorneys, Capital Management Llc, Criminal Case, Currency Transactions, District Judge, Edwards, Federal Prosecutors, Guilty Plea, Hedge Fund Manager, Investment Adviser, James Nicholson, Mail Fraud, Manhattan, Ponzi Scheme, Redemption, Retirement, Richard Sullivan, S College, Saddle River No Comments »UBS Seeks to Thwart Swiss Investors’ Arbitration Attempt
October 22nd, 2009 Before You Invest UBS Securities filed a lawsuit in the U.S. District Court in Manhattan on Tuesday seeking to thwart an attempted arbitration claim by a group of Swiss investors. The arbitration claim was filed with the Financial Industry Regulatory Authority in relation to alleged losses suffered by the Swiss UBS clients.The arbitration claim hopes to recover $41 million in hurts from UBS in connection with an investment made in a company called HealtheTech Inc.
ATM Ponzi Scheme Ended
September 29th, 2009 Before You Invest Federal authorities say two men are charged in New York with an $80 million Ponzi scheme involving automated teller machines.One of the suspects was arrested Friday in Garner, N.C. Authorities say the other is expected to surrender in Manhattan on Monday on charges of wire fraud, and conspiracy to commit wire fraud.The U.S. attorney in Manhattan and the FBI say the men solicited investments for ATMs, saying they would generate revenue from cash withdrawal fees.The machines supposedly were to be placed in retail locations around the country, including convenience stores, gas stations, malls and hotels.Most of the machines didn’t exist, or were never owned by the men.The alleged scheme occurred from 2005 to January 2008.
Monster to Settle SEC Backdating Claim
May 20th, 2009 Before You Invest Monster Worldwide Inc., the world’s largest online- recruiting company, will pay $2.5 million to settle a Securities and Exchange Commission lawsuit for making misleading public statements about stock options it issued.The suit and settlement were filed yesterday in Manhattan federal court. A federal jury last week found former Monster Chief Operating Officer James Treacy, 51, guilty in a criminal trial of defrauding investors by improperly accounting for backdated stock options at the New York-based company.Monster reported in 2001 that net income was $69 million when it was really $3.4 million after options expenses were recorded, prosecutors said in the Treacy case.
Posted in Finance Fraud Tags: 5 Million, Chief Operating Officer, Criminal Trial, Damages, Earnings, Federal Jury, Investor Lawsuit, James Treacy, Manhattan, Misleading Public Statements, Monster Worldwide, Monster Worldwide Inc, Net Income, Nine Years, Option Grants, Prosecutors, Recruiting Company, Securities And Exchange, Securities And Exchange Commission, Stock Options No Comments »Madoff Investors Force Involuntary Bankruptcy
April 13th, 2009 Before You Invest Madoff investors filed an involuntary bankruptcy petition against the convicted money manager to ensure that all of his assets are used to pay victims of his $65 billion Ponzi scheme. The petition, filed by five investors today in U.S. Bankruptcy Court in Manhattan, seeks to push Madoff into Chapter 7 bankruptcy.
Ex-KPMG Partners Sentenced For Tax Shelter Scheme
April 3rd, 2009 Before You Invest Former KPMG LLP senior manager John Larson was sentenced to 10 years in prison and former partner Robert Pfaff got eight years for selling illegal shelters that helped wealthy clients evade more than $100 million in taxes.Larson was also fined $6 million yesterday in Manhattan federal court, Pfaff was fined $3 million and both were immediately jailed.
Missing Fund Manager Arrested
January 27th, 2009 Before You Invest Florida fund manager Arthur Nadel, whose family reported him missing in early January, was arrested on Tuesday on criminal charges of securities fraud, U.S. officials said.New York FBI spokeswoman Monica McLean said Nadel — head of Scoop Management, overseeing six hedge funds he had valued at more than $300 million — would make an initial appearance in a federal court in Florida.”Arthur Nadel surrendered in the company of two lawyers to FBI agents in Tampa,” McLean said.In a criminal complaint filed in U.S.
Posted in Finance Fraud Tags: Affidavit, Avenues, Court Document, Criminal Charges, Criminal Complaint, Excerpts, Fbi, Fbi Agent, Handwritten Letter, Hedge Funds, Initial Appearance, Kevin Riordan, Manhattan, Monica Mclean, Nadel, Scoop, Securities Fraud, Shredding Machine, Spokeswoman, Wire Fraud No Comments »Madoff Trustee May Take Five Years To Pay Investors
January 22nd, 2009 Before You Invest Irving Picard, the lawyer seeking to recover money invested with alleged swindler Bernard Madoff, may take more than five years to pay all customers of the man accused of a $50 billion Ponzi scheme.The 67-year-ancient Picard is tackling the most complex fraud in the four-decade history of the Securities Investor Protection Corp., the government-backed corporation that hired him, SIPC President Stephen Harbeck said.Picard was named trustee of Bernard L.
Posted in Finance Fraud Tags: Assets, Attorneys, Baker Hostetler Llp, Bernard Madoff, Brokerage, Claimants, Decade, Demand Documents, Fraud, Harbeck, House Arrest, Investment Securities, Investor Protection, Lawyer, Lawyers, Manhattan, More Than Five Years, Prosecutors, Swindler, Trustee No Comments »
