According to a recent article, three brokers have been charged for violating
securities laws related to a
hedge fund that was recently alleged to be a
Ponzi scheme. Stephen Persad, Dominic O’Dierno, and Benjamin R. Daniels are the
three men who have been charged, and all three men have reportedly agreed
to settle the charges. As a result, the trio will also be barred from
the investment industry for three years.
Although all three men had previously been appropriately registered, federal
regulators allege that none of the men were registered at the time they
were taking in investor cash for the hedge funds. They reportedly earned
almost $800,000 in commissions for connecting investors with the fraudulent
hedge funds, and it is alleged that they circulated misleading marketing
materials and repeated false or inflated statements from the hedge fund manager.
The hedge funds in question, run by Yusaf Jawed through Grifphon Asset
Management, took in tens of millions of dollars from about 100 investors
in Oregon and around the nation. Unfortunately, the hedge fund is now
being investigated as a Ponzi scheme, and several people – including
Jawed, two attorneys, and an associate – have been charged by the
SEC. However, Persad, O’Dierno, and Daniels have not been charged
with knowing about the alleged Ponzi scheme or helping Jawed run the scam.
Stories like this one illustrate how complex hedge fund fraud cases can
be and how many parties can be involved – both directly and indirectly.
If you believe you have lost money investing in a hedge fund due to
stockbroker fraud, reach out to an experienced investment fraud attorney with Meyer Wilson
today for further guidance in recovering your investment losses.