The SEC has charged Sandra Venetis with the operation of a New Jersey-based offering fraud that swindled scores of investors, many of whom were retired, out of millions of dollars. The SEC claims that Ms. Venetis had been selling fake promissory notes to unsophisticated investors, claiming that they would earn tax-free interest of 6% to 11% a year and that they were guaranteed by the Federal Deposit Insurance Corporation, since 1997. Ms. Venetis and her three entities, Systematic Financial Associates Inc., Systematic Financial Services LLC, and Systemic Financial Services Inc., allegedly “solicited and obtained funds from clients and others to invest in promissory notes, fixed income investments, or other side investments.” According to the SEC, these claims and offerings were entirely fabricated and unsupported by any investments or assets.
Instead of investing the $11 million she unlawfully obtained from investors, Ms. Venetis diverted the money to pay off her business debts and personal expenses from gambling, international travel, home mortgages and property taxes. She also funded home improvements on property owned by her brother and purchased a home for her daughter.
|
