The Federal Bureau of Investigation has announced the arrest of the owner of a North Carolina investment firm on charges of securities fraud and Ponzi scheme operation.

According to the US Attorney for the Western District of North Carolina, the investment firm owner has been charged with operating a scheme that defrauded investors of millions of dollars, by coaxing them to invest in the foreign currency market. The charges have been filed against the man who now faces one count of securities fraud in connection with the Ponzi scheme.

Ponzi schemes can be of various types, and in this one, the defendant is believed to have lured investors by inducing them to invest in his companies. The investors were told that they would be investing in over-the-counter foreign currency exchange.

Instead, according to the FBI indictment, the man operated a scheme in which he attracted investors through a series of false representations, omissions of important facts and lies. He claimed to investors that he had several decades of experience in investments, including options trading and commodities trading. In actual fact, according to the FBI, the man had no such experience in the investment field at all.

He's also believed to have coaxed his victims into a false sense of security, by projecting millions of dollars in hefty annual returns on their investment. At least 500 victims in all invested about $4.7 million in the Ponzi scheme.

As it happens in almost every Ponzi scheme, the money that was obtained from investors, was not invested in anything, but was used to pay off the man's personal expenses. He paid off older investors with the money that was gained from new investors.

As part of the government’s intensifying probe into SAC Capital Advisors, a senior portfolio manager at the firm was recently arrested for his role in what the government believes is an insider trading ring.

Michael Steinberg is a senior portfolio manager for SAC Capital Advisors, which manages close to $15 billion. This is one of the country’s most influential investment companies, and was founded by billionaire businessman Steven Cohen.

Arizona criminal defense attorneys have found that the federal administration has been intensifying its investigations into illegal activity on Wall Street, and this latest arrest is part of a series of actions that the feds have been taking against such activity. Two weeks ago, the Securities and Exchange Commission confirmed that 2 affiliates of the company would pay more than $614 million to settle charges of insider trading. That settlement has not yet been approved.

Michael Steinberg was arrested at his Manhattan apartment, and has now pleaded not guilty to charges of insider trading. He has been released on bail of $3 million.

According to the US Attorney, Steinberg was a Wall Street insider who used proprietary and confidential information that was cultivated by professionals who manipulated the rules for gain. The FBI says that it is currently conducting an investigation into these insider trading allegations, and the investigation has resulted in more than 70 arrests. Steinberg's arrest is not the first at SAC Capital Advisors. Over the past 4 years, 4 other persons who were associated with the company have also been arrested. The feds believe that Steinberg is the center of an elite club that rewarded cheating and corruption.

Steinberg's arrest means more bad news for Steven Cohen because it indicates that the administration is taking a much stronger look at the practices used by the billionaire businessman in his hedge fund operation. He has not yet been charged, and according to authorities, he is cooperating fully with the inquiry.

A federal grand jury has indicted 4 persons on serious mortgage fraud related charges. The 4 face charges of wire fraud, failing to file tax returns, filing false tax returns as well as bank fraud.

The indictment names the 4 persons, all residents of Pennsylvania, and charges them with participating in what the Federal Bureau of Investigation calls a “multifaceted mortgage fraud” involving tens of millions of dollars worth of fraudulent loans on hundreds of properties.

According to the indictment, at least 2 of the defendant operated businesses that were involved in the purchase and sale of real estate. They sold properties that were financed through a complex and sophisticated mortgage fraud scheme. They also executed fraudulent settlement statements, and made false representations to borrowers about making enhancements to the properties.
The other members of the ring also played a role in the fraud. They presented loan applications to mortgage lenders, submitting documentation with false statements.

These indictments and arrests were the result of investigations by the Mortgage Fraud Task Force. The Mortgage Fraud Task Force comprises investigators from federal agencies like the Federal Bureau of Investigation and the Internal Revenue Service, state law-enforcement agencies as well as local law-enforcement agencies. The Mortgage Fraud Task Force also collaborates with mortgage industry insiders in its investigations.

Arizona criminal defense attorneys have recently come across a number of arrests for white collar crimes based on investigations conducted by the Mortgage Fraud Task Force. Many of these investigations have resulted in indictments, and even criminal charges.
If you're being investigated for mortgage fraud charges, you have to know that these are extremely serious charges that can result in severe penalties and lengthy prison terms in the case of a conviction.