U.S. Attorney, Other Officials Announce Results of ‘Operation Broken Trust’ Targeting Investment Fraud
Copyright: | (c) 2010 Targeted News Service |
Source: | Targeted News Service |
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Following an announcement earlier today by U.S. Attorney General
As part of today's announcement, U.S. Attorney Fein also announced the formation of the
In the District of
"With this operation, the
"Many of the victims of these fraud schemes are particularly vulnerable - retired, elderly, widowed - individuals who simply wanted their hard-earned money to be managed safely so that they could live their lives with a sense of financial security," said U.S. Attorney Fein. "That's why it's important that we investigate aggressively and prosecute effectively these types of crimes: To hold wrongdoers accountable, to provide justice, and to seek and where possible obtain restitution for these victims."
U.S. Attorney Fein specifically acknowledged the investigative efforts of the
Noting that he has made the investigation and prosecution of investment-related crimes a top priority of the
The Task Force is actively investigating matters relating to insider trading, market manipulation, Ponzi schemes, investor fraud, financial statement fraud, violations of the Foreign Corrupt Practices Act, and embezzlement.
"Clearly, there is a need for vigorous securities fraud investigation and enforcement, now more than ever," said U.S. Attorney Fein. "Criminal activity around our capital markets has increased, and mortgage fraud, investor fraud, securities fraud and corporate fraud schemes have devastated honest investors and eroded public confidence in the capital markets.
U.S. Attorney Fein noted that
"Investor confidence is integral to this nation's economic recovery and relies upon the integrity of the financial institutions entrusted with investors' hard-earned funds," said FBI Special Agent in Charge Kimberly K. Mertz. "
The
"The Criminal Division is pleased to be a partner in the
"The Antitrust Division is committed to prosecuting bid rigging and price fixing in the financial markets industry," said
"The Task Force announced today underscores the fact that in law enforcement, the whole is greater than the sum of its parts," said
"When the
"Illegal activity involving the investment industry has brought financial ruin to many Americans," said
"
"The State of
"
The President's
Operation Broken Trust Prosecutions
US v. Goldberg
On
Goldberg's scheme to defraud investors involved principally two different types of misrepresentations. First, he solicited money from investors purportedly to purchase diamonds at extremely low prices from vendors in
The vast majority of Goldberg's fraud, however, involved his solicitation of individuals and organizations to invest money in the purchase of distressed assets from
When he pleaded guilty, Goldberg admitted that every one of his representations was false. Goldberg admitted that, aside from a brief period in 1997, he did not purchase diamonds in
This matter is being investigated by the
US v. LaSaracina
On
This matter is being investigated by the
US v. Garcia
On
Instead of investing the funds as promised, Garcia used clients' money to pay for personal expenses for himself and his family, and to make "lulling" payments to clients. Through this scheme, Garcia victimized at least 10 people and caused a net loss to his victims of more than
Garcia also willfully evaded the payment of income taxes for the tax years 2005, 2006, 2007 and 2008, resulting in a tax loss to the government of
This matter was investigated by the
US v. Rivernider, Ponte and Seneca
On
The indictment alleges that Rivernider and Ponte conspired to defraud several victim investors by misrepresenting that the investors' monies would be invested in legitimate, high-return investments. As part of the conspiracy, the defendants used the Internet and other means to market a debt payment program typically called "No More Bills" through
The indictment alleges that Rivernider and Ponte misrepresented that investors would receive a substantial investment return, typically a monthly repayment on the invested monies of approximately seven to ten percent of their initial investment; that the returns would continue for a period substantially longer than needed to recoup the initial investment and result in a return substantially greater than the initial investment; that the victim investors' existing debts and home equity lines of credit, if taken out to fund the investment, would be repaid in full from investment returns, and that the victim investors' monies were being invested offshore in legitimate high-return investments, including investments in foreign currency exchanges, hedge funds, or other high-yield ventures. Instead of investing the funds as promised, the indictment alleges that the funds were used to pay, among other things, the preexisting debts of other investors, and the living expenses of the extended family of the defendants. Through this first scheme, it is alleged that more than 10 investors lost at least
The indictment further alleges that Rivernider, Ponte and Seneca engaged in a real estate investment scheme that defrauded both lenders and individuals they recruited. As part of the scheme Rivernider, Ponte and others recruited victim borrowers to take out financing to purchase various investment properties, primarily in
This matter is being investigated by the
US v. Buchholz
On
Buchholz, a registered securities broker working as an independent contractor operating a branch office of
In executing the scheme, Buccholz caused checks to be drawn in the name of the victim clients and caused those checks to be sent directly either to his office or to the clients. In the instances where the checks were sent directly to the clients, Buchholz convinced his clients to turn the checks over to him, falsely indicating that the proceeds would be invested in their investment accounts. At times, Buchholz forged his clients' signatures on documents and checks, and further misrepresented that he had authorization from his clients, when he redeemed the securities.
This matter results from a joint investigation by the
US v. Plummer and Clark
On
The indictment alleges that Plummer and Clark falsely represented to investors and potential investors that they, or a company they controlled, owned hundreds of acres of land in Lakeshore,
The indictment further alleges that Plummer made other false representations to defraud individual investors out of hundreds of thousands of dollars.
This case is being investigated by the
US v. Armand
On
This matter is being investigated by the
US v. Loles
On
The indictment alleges that Loles owned
The indictment alleges that Loles falsely represented to numerous victim-investors, including friends and fellow parishioners of his church that he would act as their investment adviser and invest their funds through Apeiron in various securities including in what he described as "Arbitrage Bonds," which Loles represented would provide investors with a safe and steady return. Loles also was selected to serve on the board of the church's endowment fund and was entrusted to manage the church's investment funds, including the endowment fund and the building fund, by investing in, among other things, Arbitrage Bonds. However, the Arbitrage Bonds did not exist.
It is alleged that Loles caused numerous victim-investors to invest more than
It is alleged that some of the individual investors provided Loles with funds that had previously been invested in IRAs, 401(k)s, or were proceeds of life insurance payments.
This case is being investigated by the
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