Kenneth Rijock

Kenneth Rijock

Tuesday, August 19, 2014

RAINMAKER FOR HEDGE FUND THAT FED PONZI SCHEME TO PLEAD GUILTY


Another participant in the Rothstein case will most likely be going to prison. Frank Preve, who reportedly sent $154m in investor money to Scott Rothstein's Ponzi scheme, while at Banyon Capital, regarded as a major feeder fund for the bogus legal settlements sold by Rothstein, has agreed to enter a plea of guilty to Conspiracy to Commit Wire Fraud*. The maximum sentence for this crime is five years in Federal Prison and a $250,000 fine.

Preve allegedly secured $20m in new money, during the last four months before the Ponzi scheme collapsed, when he know that Rothstein was not meeting his obligations to investors. Losses of the Ponzi scheme have been estimated at $1.4bn.
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* Case No.: 14-cr-60159-JIC (SD FL).

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