Banyon's Levin Hit With SEC Suit Over Rothstein Fraud

May 23 2012 | 3:20am ET

The Securities and Exchange Commission has sued a hedge fund manager and a partner for allegedly defrauding investors in the Scott Rothstein Ponzi scheme.

Banyon Investments' George Levin and Frank Preve raised more than $157 million from 173 investors. The money was then turned over to Rothstein as part of his $1.2 billion Ponzi scheme, which collapsed two-and-a-half years ago.

According to the SEC, Levin and Preve misled investors about the risks involved and continued to sell Rothstein's scheme even after it began to collapse, lying to investors about its success.

Rothstein himself fingered Levin during a deposition, testifying that Levin knew he was running a scam. "The Ponzi scheme really got legs when I was introduced to George Levin," Rothstein said. "Levin knew."

Levin and Preve's lawyers said their clients were "two of the biggest victims of the Rothstein Ponzi scheme" and that they were "extremely disappointed" by the SEC lawsuit.

Rothstein is serving a 50-year prison sentence for the fraud.


In Depth

Q&A: Brevan Howard’s Charlotte Valeur Talks Strategy

Sep 18 2014 | 11:18am ET

Charlotte Valeur chairs the board of Brevan Howard Credit Catalysts, an LSE listed...

Lifestyle

Griffin Donates $1M To Rauner's Illinois Gov. Campaign

Sep 22 2014 | 9:29am ET

Hedge fund billionaire Kenneth Griffin definitely has a dog in this race. The Citadel...

Guest Contributor

Top 5 Predicted Outcomes Of CalPERS' Hedge Fund Divestment

Sep 22 2014 | 8:35am ET

CalPERS’ announcement to divest of hedge funds has created a significant buzz...

 

Editor's Note

    Get A Sneak Peak Of The Alpha Pages

    Aug 25 2014 | 11:21am ET

    As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…

 

Futures Magazine

September 2014 Cover

The London Whale: Rogue risk management

Credit default swaps brought down the London Whale and cost JPMorgan $6.2 billion. Here is how it happened.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.