Massachusetts Man Charged with $15.9 Million Ponzi Scheme

June 27th, 2009
| More
Earlier this week, the SEC accused Michael C. Regan and his firm, Regan & Company, of a multi-million dollar Ponzi scheme. The SEC alleges that Regan raised at least $15.9 million from investors by promising returns as high as 20%.

According to a statement by James Clarkson, the Acting Director of the SEC’s New York Regional Office, commented, “Regan lured investors, including family and friends, by touting his investment prowess…He routinely fabricated investment returns to make it appear that he was a successful money manager when in fact he was stealing investor money to pay his own expenses.”

Mr. Regan “promised investors that their money would be pooled into a ‘fund’ that he would invest on their behalf in securities using a conservative, low-risk trading strategy that he claimed was based upon ‘short-term price trends.’”

Mr. Regan also lied about his trading experience, claiming to have an MBA in finance from a major New York institution. In addition, the company is accused of distributing false financial statements and tax forms to cover up Mr. Regan’s fraudulent use of investors’ money for personal expenses. The company is now liable for approximately $8.7 million in “disgorgement and prejudgment interest.”
See Press Release
For Detailed Investor Profiles on these Investors, click below:
Regan & Company
Related People: Michael C. Regan
Related Article Tags: Hedge Fund Fraud and Ponzi Scheme News


More Recent Headlines

Former Lehman Trader Launching Credit Focused SaKa Capital

Cheyne hires Giampoaoli, Launches Equity Macro Fund

Children's Investment Fund Cutting Fees, Scaling Back Activism

Mellon Capital Launching Commodity Hedge Fund

Yahoo's Bartz on the Right Track

SEC Scrutinizes Shareholder Activists use of Swap Agreements

Atticus Raises its Paddle with SAC for Sotheby's

New Stream Faces Allegations, Lawsuits & Potential Takeover

City National to Acquire Lee Munder Capital

SEC Uncovers $10 million Fraud in Oklahoma