The Securities and Exchange Commission (SEC) announced that
investment fraud charges have been filed in a Chicago federal court against a Virgin Islands
money manger. The charges were brought against Daniel Spitzer for his
alleged connection to a
Ponzi scheme of approximately $105.6 million.
The complaint claims that Daniel Spitzer involved nearly 400 investors
in his investment scam. He told investors that their money would be primarily
used to invest in foreign currency. According to the SEC, of the $105.6
million collected from investors, nearly $72 million was used to repay
previous investors. Spitzer supposedly used less than one-third of the
capital for investments.
The SEC alleges that Spitzer used the money to enjoy an “extravagant
lifestyle” and to cover expenses associated with running his business.
In addition, the SEC cites that he used approximately $900,000 to pay
for expenses he incurred at a Las Vegas casino from March 2006 through
“Daniel Spitzer ran an elaborate
Ponzi scheme that he disguised by moving investor money through a complex network of
foreign bank and brokerage accounts,” said Merri Jo Gillete, the
director of Chicago’s SEC regional office. “He deceived investors
into believing that he was using a sophisticated investment strategy that
didn’t really exist.”
The Law Firm of David P. Meyer & Associates
If you have lost money due to investment fraud, you should contact one
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by calling toll-free (888) 390-6491 or filling out our
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