Thursday, 21 August 2014
Last updated 1 hour ago
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.
Aug 4 2014 | 7:42am ET
By now, U.S. and international subscribers have received their home or office delivery of the special 500th issue of Futures magazine. You can too!—a very special offer follows. The issue is the largest in years—filled with the best trading strategies and stories from 43 years of being the primary publication for commodity, stock, options and forex traders. Read more…
The July/August 2014 issue is our largest in years—filled with the best trading strategies and stories from 43 years of being the primary publication for commodity, stock, options and forex traders.
The Alpha Pages Editor's Note