Detroit Money Manager Frank Bluestein Barred from Securities Industry,
Ordered to Pay Millions for Role in May’s Scheme
Detroit money manager Frank Bluestein has been barred from the securities industry and ordered to pay $4.4 million
for his alleged role in Edward May’s massive
Edward May, founder of E-M Management Co. LLC (E-M), pleaded guilty to 59 counts of fraud in 2011 for cheating investors across the nation
out of $35 million in a Ponzi scheme. May told investors that his companies
held telecommunications contracts with several major hotel chains that
guaranteed income of $30,000 - $100,000 per month to each company.
The contracts never existed. May misappropriated funds and used new money
to pay earlier investors. As many as 1,200 investors lost their life savings
when the scheme collapsed.
May was indicted in 2009, after an SEC complaint claimed he had solicited
$250 million in fraudulent investments. According to the SEC, Bluestein
was the single largest salesperson in May’s scheme. He allegedly
raised around $74 million from more than 800 investors by misrepresenting
the securities as safe.
Bluestein has admitted to selling and receiving commissions and referral
fees for selling unregistered Edward May securities, but he has denied
knowing that the securities were fraudulent. As of now, he has not been
charged with any crimes.