According to a recent article, three brokers have been charged for violating securities laws related to a hedge fund that was recently alleged to be a Ponzi scheme. Stephen Persad, Dominic O’Dierno, and Benjamin R. Daniels are the three men who have been charged, and all three men have reportedly agreed to settle the charges. As a result, the trio will also be barred from the investment industry for three years.
Although all three men had previously been appropriately registered, federal regulators allege that none of the men were registered at the time they were taking in investor cash for the hedge funds. They reportedly earned almost $800,000 in commissions for connecting investors with the fraudulent hedge funds, and it is alleged that they circulated misleading marketing materials and repeated false or inflated statements from the hedge fund manager.
The hedge funds in question, run by Yusaf Jawed through Grifphon Asset Management, took in tens of millions of dollars from about 100 investors in Oregon and around the nation. Unfortunately, the hedge fund is now being investigated as a Ponzi scheme, and several people – including Jawed, two attorneys, and an associate – have been charged by the SEC. However, Persad, O’Dierno, and Daniels have not been charged with knowing about the alleged Ponzi scheme or helping Jawed run the scam.
Stories like this one illustrate how complex hedge fund fraud cases can be and how many parties can be involved – both directly and indirectly. If you believe you have lost money investing in a hedge fund due to stockbroker fraud, reach out to an experienced investment fraud attorney with Meyer Wilson today for further guidance in recovering your investment losses.