Sunday, June 28, 2009

NY Investment Advisor Pleads Guilty To Running $30 Million Ponzi Scheme

Edward T. Stein, 59, of Manhattan, New York, pleaded guilty to a five-count felony Information charging him for bilking his clients in a $55 million Ponzi scheme. Stein is the head of Roslyn, New York-based Edward T. Stein Associates Ltd. Stein admitted that between 1998 and 2009, he fraudulently solicited investors to purchase interests in several funds and partnerships he controlled by falsely assuring them that he would make investments on their behalf with the money they provided. Instead, he used the funds for his own purposes and to pay earlier investors. Stein faces 15- 20 years in prison. The SEC took action last April and froze Stein's funds.

Read the story here and here.

Read the DOJ announcement here.

Read the SEC's announcement here.

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