Sandra Ventis, owner of Systematic Financial Associates, pleaded guilty on April 26th to counts of securities fraud and transacting criminal property. Ventis allegedly operated Systematic Financial Services, a second company, solely to front an investment scheme that targeted the Branchburg-based investment advisor’s clients.
She apparently took $7 million from investors in the scam, which she is said to have used to pay gambling debts, take exotic vacations, and pay her own personal expenses. She also is said to have used the money to cover operating expenses and to pay off previous investors in a Ponzi scheme fashion.
Ventis allegedly told investors she was using their money to fund loans to doctors for pension plans in the form of promissory notes. Some investors were encouraged to sell off other securities in order to invest in the scheme. She admitted to making up or forging doctor’s names in order to keep up the promissory note fraud.
Ventis faces a maximum of 20 years in prison with a five million dollar fine for the count of securities fraud, and ten years with a 250,000 fine for the count of transacting in criminal property.
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