The FBI has arrested and charged 39-year old Gregory Gray last month on investment fraud charges, accusing him of defrauding clients through his company Archipel Investments. He misappropriated $5 million in funds from one investor designated to buy technology stocks; instead, he used the money to pay off other investors and to purchase stock in Twitter.
Gray has allegedly used funds from at least three other Archipel entities to make Ponzi-style payments to other investors. He has solicited and received investments from several prominent New Yorkers, including one-time state senate candidate Andrew Russo and former pro football player Tim Green, among others.
Gray has not been accused of personally having benefitted from the fraud at this point, although Russo expects there to be lawsuits from people who held investments with Gray.
Gray has had regulatory action taken against him by the New York Stock Exchange (NYSE) on two previous occasions. He was barred from NYSE for three years in 2008 after investigators found he “effected unauthorized trades in the accounts of one or more customers” and “threatened or harassed one or more complaining customers and/or their family members.”
If you or someone you know invested with Gregory Gray or Archipel Investments, you may have certain legal rights that require your attention. Contact the New York investment fraud attorneys at Dimond Kaplan & Rothstein, P.A. to set up a consultation today to discuss your legal rights over the phone or at one of our local offices in Florida, California or New York.