NJ Investment Adviser Accused of Stealing Over $1M from Clients
The US Securities and Exchange Commission has brought investment adviser fraud charges against Scott Newsholme, a New Jersey-based financial adviser and tax preparer, accusing him of stealing over $1M from clients so he could support his lifestyle and support his gambling. According to the regulator, Newsholme generated fake account statements and “doctored stock certificates and forged promissory notes.”
Prosecutors have filed a parallel criminal case against him. Rather than invest clients’ funds in different securities as promised, Newsholme allegedly went to a check-cashing store to cash their checks and then kept their money for himself to cover his own expenses and gambling activities, as well as make Ponzi-like payments to the clients who wanted their money back.
Radio Host Accused of Stealing Millions of Dollars in Concert Ticket Scheme
Craig Carton, a sports radio host, is accused of running a concert ticket scam to bilk investors. According to the SEC’s complaint, he and Joseph Meli, another man whom the regulator had already filed charges against earlier this year, touted blocks of face value tickets to concert performances that were in demand and promised investors high returns that would come from ticket resales and their accompanying price markups.
Instead of purchasing the tickets for resale, contends the regulator, the men allegedly misappropriated at least $3.6M to pay back earlier investors and pay for other costs, including Carton’s gambling debt. Carton is also accused of stealing another $2M by persuading a concert venue to send an investor’s funds to a bank account owned by his company. Now, the Commission wants disgorgement of ill-gotten gains, interest, and penalties against Carton, Meli, and six businesses under their control. Meantime, the U.S.Attorney’s Office for the Southern District of New York has filled parallel criminal charges against Carton.
In the SEC’s case against Meli, he and another man, Mathew Harrington, are accused of operating a Ponzi scam in which they raised funds for businesses supposedly focused on buying and reselling tickers to popular shows, including the Broadway show Hamilton. Aside from allegedly making Ponzi-like payments to earlier investors using newer investors’ funds, the two men are accused of diverting nearly $2M to their own spending.
Investment Adviser Accused of Costing Investors $800K Pleads Guilty
Kevin Brown, a Pennsylvania investment adviser, has pleaded guilty in a criminal case accusing him of selling unregistered securities that caused investors to suffer $800K in losses. Brown, along with his father, George B. Brown, settled a civil case brought by the SEC in 2015 accusing them and entities they controlled with running three multi-million dollar offering frauds.
The Commission accused them of raising $50M from over 300 investors and using their money for other than what was authorized, including making Ponzi-like payments and undisclosed and unrelated business expenses.
Please contact our securities fraud law firm if you are wondering whether you have grounds for an investor fraud claim. Shepherd Smith Edwards and Kantas, LTD LLP has helped thousands of investors to recoup their losses.
Investment Adviser Pleads Guilty to Fraud in Kansas, AP/US News, September 7, 2017