Got fraud? financial scammers of the week

Want to know what not to do when running your business and serving your clients? Here’s our roundup of this week’s North American scamsters and scoundrels:

Ontario man allegedly ran $163 million Ponzi scheme

Ontario entrepreneur Derek Elliott used to run a luxurious resort in the Dominican Republic. Now, however, the U.S. Securities and Exchange Commission alleges he and a former business associate, James Catledge, were actually running an “international fraudulent scheme.”

Read more on how the men sold timeshares and ownership interests in Elliott’s failing resorts. They rose more than $163-million (U.S.) from approximately 1,200 investors, by promising attractive guaranteed returns.

Unregistered rep faces 11 AMF charges, fine

The Autorité des marchés financiers (AMF) has launched a penal proceeding against Sylvain Laroche for illegal distributions and illegal practice as a securities dealer and derivatives adviser.

He’s now facing 11 charges, and the AMF is seeking $432,000 in fines from him.

SEC investigates major Florida Ponzi scheme

The SEC is currently investigating George Levin and Frank Preve, Fort Lauderdale residents, for their part in one of South Florida’s largest-ever Ponzi schemes.

The two men raised more than $157 million from 173 investors by issuing promissory notes from Levin’s company, as well as interests in a private investment fund they operated. They then used investor funds to purchase discounted, but fake, legal settlements from former Florida attorney Scott Rothstein.

SEC fines U.S. fund manager

Disgorgement is such an ugly word.

But it could happen to Jason J. Koiner, a New York-based ‘fund manager’ and his two firms Absolute Fund Management and Absolute Fund Advisors. The SEC alleges that since November 2011 Koiner raised $11 million selling investors limited partnership interests.

Canadian runs U.S. Ponzi scheme

A U.S. District Court in New Hampshire entered final judgments last week against New Futures Trading International Corporation and Henry Roche for running a Ponzi scheme.

The Commission’s November 16, 2011 complaint alleged Roche, through New Futures, engaged in an ongoing unregistered offering of securities in the U.S. through operations in New Hampshire and Ontario, Canada.

And what did he do with some of the stolen funds? He bought and operated a horse-breeding venture.