The Securities and Exchange Commission (SEC) is attempting to link a Colorado
financial advisor to multiple
Ponzi schemes. Neal Greenberg, a financial advisor and head of the Agile Group in Boulder,
Colorado, has been accused of operating a series of investment scams that
served as feeder funds into Bernard Madoff and Tom Petters’ operations.
According to the allegations, Mr. Greenberg targeted older investors by
fraudulently marketing risky hedge funds as highly diversified and low
risk investments. Mr. Greenberg then used those funds as feeder funds
for operations being managed by Mr. Madoff and Mr. Petters, who have both
been convicted and are serving prison sentences for orchestrating their
own multi-billion dollar Ponzi schemes.
Federal regulators have accused Mr. Greenberg of fraud and breaching his
duty to his clients. Mr. Greenberg is currently waiting for a trial date.
unsuitable recommendations and
misrepresentations deceived his advisory clients into believing their investments were safe
with him," said Donald Hoerl, director of the SEC's Denver office.
Three of the Agile hedge funds involved approximately $174 million from
nearly 100 investors. According to officials, all of the funds suffered
heavy losses due to investments made in feeder funds associated with Mr. Petters.
Mr. Greenberg also set up funds to feed into Mr. Madoff’s operations.
They suffered heavy losses.