Posts Tagged With Wire Fraud

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Former New York Law Firm Partner Pleads Guilty to Conspiring to Defraud Two New York Law Firms

On November 20, 2017, Keila Ravelo, a former law firm partner, pled guilty to conspiring to defraud two New York law firms.  Ravelo pled guilty to an indictment charging her with one count of conspiracy to commit wire fraud and one count of tax evasion.  From 2008 through July 2014, Ravelo and her husband, Melvin Feliz, conspired to defraud two law firms by forming two limited liability companies which purported to provide litigation support to ... Continue Reading

Chicago Investment Adviser Charged with Fraud for Allegedly Stealing More Than $5 Million from Clients

On November 15, 2017, Acting United States Attorney for the Northern District of Illinois Joel R. Levin and Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation Jeffrey S. Sallet announced the filing of an information charging Daniel Glick with one count of wire fraud.  Glick, who owned three accounting and financial services firms, was charged with lying to clients and forging checks and other documents in order to misappropriate client funds ... Continue Reading

Day Trader Indicted in Computer Hacking and Securities Fraud Scheme Targeting Online Brokerage Accounts

On November 8, 2017, a federal grand jury in Brooklyn returned a four-count indictment charging Pennsylvania resident Joseph P. Willner with conspiracy to commit wire fraud, conspiracy to commit securities fraud and computer intrusions, securities fraud, and conspiracy to commit money laundering.  According to the indictment, Willner and others conspired to hack into the online brokerage accounts of numerous victims and to place unauthorized trades in those accounts between September 2014 and May 2017.  Willner ... Continue Reading

Hedge Fund Chairman Sentenced to 30 Months in Prison for Conspiracy to Commit Securities and Wire Fraud

On November 7, 2017, Nicholas Mitsakos was sentenced by Judge Denny Chin to 30 months in prison and two years of supervised release for conspiracy to commit securities fraud and wire fraud.  Mitsakos, who had pled guilty on May 25, 2017, was also required to forfeit over $860,000 and to pay restitution to victims.  In order to attract investors to “Matrix Capital,” a hedge fund he created in October 2013, Mitsakos sent marketing materials claiming ... Continue Reading

Former CEO of Arthrocare Corporation Sentenced to 20 Years in Prison for Role in $750 Million Securities Fraud Scheme

On November 3, 2017, Michael Baker, the former CEO of publicly traded medical device company ArthroCare Corporation (“ArthroCare”), was sentenced to 240 months in prison for his role in a scheme that resulted in shareholder losses of more than $750 million.  Following a two-week retrial, Baker was convicted in August of one count of conspiracy to commit wire fraud and securities fraud, seven counts of wire fraud, two counts of securities fraud, and two counts ... Continue Reading

Connecticut Resident Pleads Guilty to Conspiracy for Participating in Multimillion-Dollar Ponzi Scheme

On October 30, 2017, Connecticut resident Steven Simmons pled guilty to one count of conspiracy to commit securities fraud and wire fraud stemming from his role in an alleged Ponzi scheme.  According to the superseding indictment filed against Simmons and other related filings with the court, Simmons solicited more than $6 million in investments for a hedge fund between 2013 and January 2017 by making false representations to investors that the funds would be placed ... Continue Reading

Virginia Hedge Fund Manager Sentenced to 10 Years in Prison for Wire Fraud

On October 23, 2017, the Honorable Anthony J. Trenga of the Eastern District of Virginia sentenced former hedge fund manager Tamer Moumen to 10 years’ imprisonment, after Moumen pled guilty to wire fraud in May 2017 in connection with a $9.5 million investment scheme.  Moumen, the founder of Crescent Ridge Capital Partners, was additionally ordered to forfeit $9.5 million and to pay $7.5 million in restitution to victims.  According to documents filed with the court, ... Continue Reading

Westchester Hedge Fund Manager Arrested in Connection with Alleged Ponzi Scheme

On October 5, 2017, Westchester County hedge fund manager Michael Scronic was arrested and charged with one count of securities fraud and one count of wire fraud for allegedly operating a $19 million Ponzi scheme.  Authorities allege Scronic, manager of the Scronic Macro Fund (the “Fund”), obtained more than $19 million from approximately 45 investors since April 2010 through misrepresentations as to the Fund’s performance and issuance of falsified account statements.  Scronic allegedly held out ... Continue Reading

Former Broker-Dealer Managing Director Sentenced for Public Pension Fund Bribery Scheme

On September 29, 2017, the Honorable J. Paul Oetken of the Southern District of New York sentenced a New York broker-dealer’s former managing director of institutional fixed income sales Deborah Kelley to three years’ probation, including six months of home confinement. Kelley was also ordered to pay a $50,000 fine, $187,900 in forfeiture, and complete 1000 hours of community service; restitution will be determined within 90 days.  Kelley pled guilty to conspiracy to commit securities ... Continue Reading

Federal Grand Jury Indicts Former Head of SoCal Software Company and IT Executive of Australian Bank for Bribery Scheme Relating to Purchase of Company

On September 27, 2017, a Los Angeles grand jury returned a 15-count indictment for Eric Pulier, the founder, CEO and largest shareholder of software company ServiceMesh, Inc., and Jon Waldron, a former IT manager at the Commonwealth Bank of Australia (“CBA”), relating to charges that ServiceMesh paid bribes to CBA executives to approve contracts that inflated the company’s revenues, which in turn caused Computer Sciences Corporation (“CSC”) to pay a $98 million incentive bonus as ... Continue Reading

Former Executive of a Tenet Hospital and Health Clinic Owner and Operator Charged for $400 Million Fraud and Bribery Scheme

On September 26, 2017, a former Tenet Healthcare Corporation Hospital CEO, Bill Moore, along with an owner and operator of an Atlanta-based chain of pre-natal clinics, Edmundo Cota, were charged for orchestrating a fraud and bribery scheme that caused Tenet to bill Georgia and South Carolina Medicaid Programs for over $400 million.  Moore was charged with one count of conspiracy to defraud the United States and pay and receive health care bribes, two counts of ... Continue Reading

Israeli Citizen Gets 3 Years’ Imprisonment for Foreign Exchange Fraud

On September 25, 2017, the Honorable Deborah A. Batts of the Southern District of New York sentenced Fadi Ewiess to three years in prison after pleading guilty to wire fraud in connection with his role in a scheme to defraud investors through Golden Bridge FX, a purported foreign exchange (“forex”) trading platform through which customers could place bets on the direction that currencies would move as against other currencies.  Through Golden Bridge, Ewiess and others ... Continue Reading

Investment Fund Manager Sentenced to 12 Years’ Imprisonment for Ponzi Scheme

On September 15, 2017, Brian R. Callahan was sentenced to 12 years’ imprisonment and three years’ supervised release after pleading guilty to securities fraud and wire fraud.  Callahan was also ordered to pay approximately $67.6 million in restitution.  Between 2006 and 2012, Callahan, who managed four different investment funds, raised more than $118 million from at least 40 investors.  Instead of investing the money in mutual funds, hedge funds and other securities, as he told ... Continue Reading

Russian Cyber-Criminal Pled Guilty for Participation in Cybercrime Ring That Caused Losses of $50 Million in Online Identity Theft

On September 8, 2017, Roman Valeryevich Seleznev pled guilty in separate criminal actions in the District of Nevada and the Northern District of Georgia to one count of participation in a racketeering enterprise and one count of conspiracy to commit bank fraud for his role in an identity theft and credit card fraud ring known as “Carder.su.”  Seleznev admitted that, as part of the crime ring, he sold stolen credit card account data and other ... Continue Reading

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