Saturday, April 30, 2011

New Jersey-based Investment Adviser Pleads Guilty to $13.6 Million Ponzi Scheme

Sandra M. Venetis, 59, of Whitehouse Station, New Jersey, pleaded guilty to charges she defrauded at least 50 investors of more than $7 million by soliciting investments in a fictitious investment program. According to prosecutors, Venetis, the owner and principal of Systematic Financial Associates, Inc., over a period of about 3 years, from 1997 through August 13, 2010, offered a scheme that she claimed would fund loans to doctors for their quarterly pension plans. Investors poured about $13.6 million into the program. Instead, Venetis used the investment funds for her own benefit, to pay for Systematic Financial's expenses and to pay returns to earlier investors. Prosecutors alleged that Venetis used investment funds to support a lavish personal lifestyle. She plead guilty to one count of securities fraud and one count of transacting in criminal property and faces up to 30 years in prison, plus fines and restitution.

Read the story here and here.

Read the DOJ announcement here.

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