Two New Jersey men face fraud charges in Ponzi scheme
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ByBrickfield & Donahue
Investors are faced with increased scrutiny since the economic downturn
in 2008. The financial industry has always been highly regulated and is
even more regulated due to highly controversial and sometimes illegal
activities that led to recent financial turmoil.
The past few years have uncovered numerous Ponzi schemes and it seems you
hear of a new scam every week in the news. Investigators can be quick
to accuse investment professionals of fraud and trying to make a quick
dollar at the expense of others.
After allegedly defrauding investors of $3.5 million, two New Jersey men
have been arrested and are facing criminal charges in federal court. Authorities
claim the two men used fake screen shots to convince investors they had
a computer algorithm that would help them yield great returns in the market
and then compiled fake account statements to ensure investors their money
was working the way it should.
The prosecutor for the case refers to the two men’s nice lifestyle
and large credit card bills as to where investors’ money was spent.
Now, authorities want to take the men’s cars and one home because
they think the men bought them with fraudulently obtained funds.
These charges are serious, and the consequences are severe. Accusing a
person of fraud can ruin their reputation and cause emotional harm to
their families before they have obtained a fair trial. Seeking out an
experienced criminal defense attorney can help minimize damage to your
reputation and protect your rights should you be accused of fraud.
Source: Patch.com, “Glen Rock Man Charged in Alleged Ponzi Scheme,” James Kleimann, Dec. 14, 2011
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