Wednesday, 22 March 2017
Last updated 22 hours ago
May 4 2009 | 1:00am ET
A New York livery cab driver who posed as a hedge fund managed was arrested on Thursday, along with one accomplice, and charged with swindling investors out of $20 million.
The Securities and Exchange Commission has charged Alan Fishman and Daniel Ledven with securities and wire fraud, alleging that their scheme went back at least five years. A third alleged accomplice, Fishman’s nephew Gary Gelman, is still at large.
Prosecutors say that the men claimed to run Manhattan-based A.R. Capital Group, which purportedly invested in international real estate and leveraged trading deals, however their clients’ money was never invested. The men gave their customers false monthly statements showing large returns, when in actuality the $20 million they received from investors was wired to Ukrainian and Lithuanian bank accounts.
With echoes of Bernard Madoff’s Ponzi scheme, some of the victims of the A.R. Capital scheme were elderly.
When the SEC first began investigating the firm in 2006, it abruptly closed down its operations. However, the men continued to solicit money from unsuspecting investors.
If convicted, the men could each spend up to 20 years in the clink.