Two Men Accused of Multi-Million Investment Fraud Scheme
A former Ithaca, NY accountant and a Plantation, Florida, man have been charged with defrauding investors out of $10 million that was diverted into their personal accounts. According to a recent Sun Sentinel article, FBI agents arrested Bruce Kane (60) and Burton Greenberg (75) on charges of wire fraud and conspiracy. Senol Taskin (50) of Ontario, Canada, also faces the same charges. All three men were indicted by a federal grand jury in upstate New York. The 16 investors that were allegedly defrauded are from throughout the United States, with at least four from New York.
The Scam
Instead of investing their clients’ money as promised, the three men purportedly used the funds to pay off personal debts, purchase a boat, rent a waterfront condo, and make their own financial investments, according to the indictment. Investors were told by the men that their money was being held in an Italian bank, where substantial profits were being made. According to authorities, Kane ran an investment partnership called Global Financial Fund 8, and solicited investments. Greenberg, who ran Florida business, M&P Global Financial Services, made arrangements to invest the funds. These transactions supposedly date back to 2001.
Investors’ money was moved between accounts held in Italy and Canada, according to court records. False “profit” payments were sent to clients by the men in 2004 and 2005, which, in reality, were just a return of some of the investors’ own money. Multiple correspondences were sent to the investors between 2004 and 2013 falsely claiming the investments were safe, secure and profitable. If convicted, the men face a maximum of 20 years in federal prison and fines of $250,000 each. They could also be forced to forfeit $10 million.
The Office of Fraud Detection and Market Intelligence (OFDMI), created in 2009, centralizes the reviews of allegations of serious fraud and substantial investor harm by FINRA and serves as a central point of contact. The OFDMI consists of four investigative groups: insider trading, fraud, central review, and whistleblowing. Matters involving potential fraud and misconduct outside of the jurisdiction of the Financial Industry Regulatory Authority (FINRA) are referred to the Securities and Exchange Commission (SEC).
Do Not Be a Victim
It is important to be an informed consumer. Unfortunately, investment fraud occurs more often than many realize. For this reason, it is important to retain an experienced and skilled fraud investment lawyer right away if you believe you may be a victim of fraud. Depending on the facts of your case, a portion or even all of your investment may be recovered under the law. Call the legal professionals at Carlson & Associates, P.A. today at (305) 372-9700 for more information.