Kenneth Rijock

Kenneth Rijock

Friday, April 3, 2015

SEC WINS CIVIL CASE AGAINST ROTHSTEIN PONZI SCHEME FEEDER FUND MANAGER GEORGE LEVIN

George Levin & Scott Rothstein
The billion dollar Scott Rothstein Ponzi scheme continues to bring down individuals who were involved in the massive fraud. A civil Securities & Exchange Commission case against George Levin, the controversial Fort Lauderdale businessman whose Banyon Income Fund LP hedge fund fed $157m into Rothstein's scam, has resulted in an adverse jury verdict against Levin for five counts of fraud, including violations of the Securities Act, the Securities Exchange Act, and SEC Rule 10b-5.

Levin operated as essentially a feeder fund for Rothstein's bogus discounted legal settlements scam; he issued promissory notes to 173 investors, misrepresenting to them that he had procedures in place to protect them. The Court reportedly indicated that it will enter a financial penalty at a later date.

Whether criminal charges against Levin will be filed remains unknown; though the five-year Statute of Limitations has run, he and any others not yet charged could, in theory, be the subject of a RICO (Racketeering) case. The merits of the case have been the subject of earlier articles on this blog, and readers can access them through the search box located on the right-hand side of this page. 

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