The people of Miami know that this recession is far from over and that is why it is extremely important to make wise investment decisions. The money that people put into investments is meant to provide a little bit of a cushion in case of job loss or as a main source of income following retirement, so it is all the more painful when Floridians find that they have been defrauded by an investor or stockbroker. Working with an experienced investment misconduct attorney, however, may help individuals recover the money they have lost.
In this story, a Florida mutual fund executive recently pled guilty to defrauding investors in 2010 and 2011 when he told them that he could get individuals early shares in Internet giants Groupon and Facebook. And this is not the first time the 50 year old has been in trouble for securities fraud. He has four previous convictions, some in Florida and some out of state for very similar crimes.
Because of his criminal record and because the executive postponed his hearing since he missed his flight from Florida to New York, the U.S. District judge immediately sent him to prison until he could be sentenced in February.
The executive admitted to draining escrow accounts that contained $11 million, part of which he used to pay for luxury items. The funds had been established so that investors could get shares of companies that were, at the time, only privately traded.
Along with the guilty plea, the executive agreed to pay $13 million, but it is unknown how much of that money will return to investors who were defrauded.
Source: The Wall Street Journal, “Fla. man gets prison for NY investment fraud,” Oct. 2, 2012
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