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

Firm Focus: Sustainable Insight Capital Bullish On ESG

Aug 12 2014 | 9:18am ET

Bruce Kahn spent over 15 years as a research scientist/consultant on environmental...

Lifestyle

Viking Manager In Rent Dispute

Aug 11 2014 | 4:14am ET

A hedge fund manager is demanding most of his money back from his former landlord...

Guest Contributor

Majority Of Inflows Go To Brand Name Hedge Funds

Aug 12 2014 | 9:00am ET

Since the market correction of 2008, a vast majority of hedge fund net asset flows...

 

Editor's Note

 

Futures Magazine

PREVIEW July/August 2014 Cover

Inside Futures' 500th Issue

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

TAP July/August 2014 Cover

Real talk on alternative investments, business & finance

The Alpha Pages Editor's Note