When Coral Gables residents invest their money, they are hoping to get a worthwhile return on their investments. Part of the reason they choose to invest is because they believe they can trust the stockbroker and his or her company. But what happens when that stockbroker has falsified his or her record? What if he or she is just taking investors' money for his or her own benefit? Oftentimes, federal prosecutors will file criminal charges against the stockbroker, yet this doesn't return the money to the individuals whose money was stolen. Only by working with an investment fraud and hedge fund lawyer to file a lawsuit against the stockbroker and his or her company may defrauded individuals get some money back.
Unfortunately, another man has recently been accused of securities fraud and hedge fund misconduct, and federal prosecutors are saying that he stole $2.7 million from investors over the span of three years. Reports indicated that the 45 year-old man had not only stolen his investors' money, but that he also had mislead them about his education, career and criminal history. It is likely that this false background made it even easier for him to take money from clients.
The man told investors that he was an investment manager and that he had graduated from Nyack College, sources say. In reality, he had never graduated from high school and never had the training to become an investment manager. He had collected $1.6 million through a hedge fund and another $1.1 million was to be invested in legitimate business ventures. Instead, the money was used to pay for the man's personal expenses and his own investments.
Investment and hedge fund fraud is more than just a crime of greed; it is absolutely devastating to those who are swindled out of their money. For some, this money was to be used to finance their retirement or to fund a child's college education. And, while criminal convictions may lock someone up, it does little to pay back the victims of his or her crimes.
Source: The Wall Street Journal, "NY investment manager charged with fraud schemes," Nov. 20, 2012
Learn more about hedge fund losses by visiting our website.
