On January 25, 2018, Diane W. Lamm, a manager of Capital L Financial Group, LLC (“Capital L”) and Aegis Capital Fund, LLC (“Aegis Capital Fund”), was sentenced by U.S. District Judge Frederic Block of the Eastern District of New York to 36 months in prison and ordered to pay restitution in the amount of $15,640,582.46.  Lamm pled guilty to two counts of securities fraud in two separate schemes.  U.S. Attorney for the Eastern District of New York Richard P. Donoghue announced Lamm’s sentence and stated that “Lamm and her co-defendant stole millions of dollars from investors and their retirement accounts” in order to support their luxurious lifestyles.  Between 2009 and 2013, Lamm and her co-defendant, John R. Lakian, were involved in two schemes to defraud Capital L and Aegis Capital Fund investors.  In the first scheme, Lamm and Lakian obtained more than $11 million from Capital L investors for investment advisory businesses and, instead, diverted more than $3 million to themselves and their personally controlled entities.  In the second scheme, Lamm and Lakian embezzled money through Aegis Capital Fund and directed more than $2 million of investors’ money to themselves or into their personally controlled entities.  Lakian pled guilty to two counts of securities fraud and was sentenced to 55 months’ imprisonment and also ordered to pay restitution in the amount of $15,640,582.46.  United States v. Lakian et al., 15-cr-00043 (E.D.N.Y.)

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