A Florida man pleaded guilty to securities fraud in a US District Court in New York. According to authorities, the man met with a partner and an investor in New York in 2010. The trio planned to develop and use a high-frequency trading algorithm.
During the meeting, the Florida man told the prospective investor that he had substantial funds already on account with a particular clearing firm. That relationship would allow the group to receive favorable trading terms. The man then suggested that the investor wire him $250,000, which he would put add to his account at the clearing firm. The investment would allow the trader to use the trading algorithm they’d developed.
The investor wired the money, but the Florida man transferred only $233,000 to the clearing firm. He used the remainder of the investor’s funds for his own personal benefit. Several months later, the Florida man stopped making payments to the vendor who had actually developed the trading algorithm. The investor contacted the Florida man and requested the return of his investment, which he had been assured was still intact.
In reality, the Florida man had used most of the investor’s funds to cover trading losses and expenses incurred at the clearing firm. He also misappropriated a large share of the investor’s money and used it for his own personal benefit. He returned $50,000 to the investor.
In court, the Florida man pleaded guilty to one count of securities fraud. He faces a maximum sentence of 25 years in prison when he returns to court for sentencing in August.
Ventura securities fraud attorney
Federal penalties for investment fraud are severe. When you face charges of securities fraud, hire an experienced securities fraud attorney like Robert Helfend. Mr. Helfend takes federal defense cases in any federal district court in the United States. He also takes state securities fraud cases in Ventura County and throughout Southern California.
Most federal defendants choose to plead guilty in the hope of securing a lighter sentence. In reality, it is possible to beat federal charges in court, but it requires an experienced, aggressive defense attorney. Don’t make the assumption that a guilty plea is either your best or only option when fighting federal charges.
Contact Robert Helfend or call toll-free at (800) 834-6434, (805) 273-5611, (310) 456-3317 or (818) 591-2809 for an immediate consultation on your Ventura County securities fraud case.
Photo Credit: Amad Nawawi, via Flickr.com