SEC charges two over $500m "brazen" fraud
US regulator has taken emergency action to charge two New Yorkers with embezzling $500 million on luxury homes and goods
The SEC alleges the two promised investors their money would be invested in a stock index arbitrage strategy. Instead, they are alleged to have used the $554 million fund to buy million-dollar homes, a horse farm, luxury cars and even rare antique Steiff teddy bears.
Scott Friestad, deputy director of the SEC's enforcement division, said: "Today's emergency action shows that the Commission will act decisively to put a stop to ongoing fraudulent investment schemes and preserve assets for investors."
Unregistered investment vehicle WG Trading Investors and WG Trading Company, Limited Partnership, which is a registered broker-dealer, have had their assets frozen, as has Westridge Capital Management, a registered investment adviser.
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