SEC Halts $55 Million Ponzi Scheme

April 1st, 2009
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In a press release today, the SEC announced that it had halted yet another Ponzi Scheme. The SEC is alleging that Edward T. Stein of Long Island-based Gemini Fund I, L.P. and DISP LLC stole more than $55 million from over 80 investors. Many of the victims were long-time friends of Mr. Stein.

According to the SEC's complaint, “Stein produced false statements for investors reflecting healthy returns over the life of those investments, while he instead used the money to pay off prior investors, pay personal expenses, and fund a failed magazine venture. The SEC alleges that in the past several months, Stein resorted to stealing client funds to continue his scheme, converting millions of dollars from a single client to pay off selected investors and purchase a million-dollar condominium for himself in Manhattan.

Robert Khuzami of SEC's Division of Enforcement was quoted as saying "Halting Ponzi schemes and freezing assets of the perpetrators continues to be an important enforcement priority for the SEC.” Since the Bernie Madoff’s ponzi scheme was uncovered in December 2008, there have been more than 17 additional schemes stopped, representing over $10bn in stolen funds.
Related Article Tags: Hedge Fund Fraud and Ponzi Scheme News

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3 Comments

by Seriously SEC on May 29th, 2009

Seriously SEC, time to look out for the little guy

by victim of edward T Stein on April 18th, 2009

with the technology today there should be a website -(USER FRIENDLY ) to verify All advisors information on their company and all advisors should be foced to have insurance

by Concerned Investor on April 2nd, 2009

Seems like everyday there is a new announcement. The SEC really needs more oversight and checks. I am really concerened about the increasing number of frauds that are being discovered.


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