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.
"Greenberg's 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.