A former UBS Financial Services broker has settled charges that he helped swindle investors out of millions in a fraudulent hedge fund scam.
The Securities and Exchange Commission says that Justin Paperny worked as a broker for the GLT Venture Fund, telling investors that the hedge fund had access to extremely profitable initial public offerings. But the fund had no such access, and the regulator said it suffered “substantial losses” due to poor trading.
GLT raised $14.1 million from 42 investors; the SEC says Paperny was paid $220,000 for his work from 2002 to 2004.
Paperny will pay to-be-determined disgorgement and civil penalty, the SEC said. He did not admit or deny the charges.