SEC freezes assets of $72 Million WEB FRAUD operation
WASHINGTON, DC - The US Securities and Exchange Commission (SEC) has obtained an emergency court order to freeze assets from an alleged internet fraud operation that had defrauded $72 million from around 3,000 investors in the US and at least 30 other countries. The SEC says it launched its action with the assistance of Michigan's Office of Financial and Insurance Regulation, the US Secret Service, and the Commodity Futures Trading Commission.
The court order alleges that Gregory McKnight and his firm Legisi Holdings sold unregistered securities between December 2005 and November 2007 through a website claiming to invest proceeds in commodity futures, stocks, shares, real estate and the foreign exchange market. The website promised to pay monthly interest of 15%. The SEC says McKnight invested only $33 million - less than half of the money raised - with resulting losses for investors. A further $30 million was dissipated through an illegal Ponzi scheme and $2.2 million alone spent by McKnight on personal expenditures and payments to relatives. A number of members of the defendant's family are also facing charges. The remaining assets have now been frozen under SEC control.
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe
You are currently unable to print this content. Please contact info@risk.net to find out more.
You are currently unable to copy this content. Please contact info@risk.net to find out more.
Copyright Infopro Digital Limited. All rights reserved.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
If you would like to purchase additional rights please email info@risk.net
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@risk.net
More on Regulation
FCMs warn of regulatory gaps in crypto clearing
CFTC request for comment uncovers concerns over customer protection and unchecked advertising
UK clearing houses face tougher capital regime than EU peers
Ice resists BoE plan to move second skin in the game higher up capital stack, but members approve
ECB seeks capital clarity on Spire repacks
Dealers split between counterparty credit risk and market risk frameworks for repack RWAs
FSB chief defends global non-bank regulation drive
Schindler slams ‘misconception’ that regulators intend to impose standardised bank-like rules
Fed fractures post-SVB consensus on emergency liquidity
New supervisory principles support FHLB funding over discount window preparedness
Why UPIs could spell goodbye for OTC-Isins
Critics warn UK will miss opportunity to simplify transaction reporting if it spurns UPI
EC’s closing auction plan faces cool reception from markets
Participants say proposal for multiple EU equity closing auctions would split price formation
Fed pivots to material risk – but what is it, exactly?
Top US bank regulator will prioritise risks that matter most, but they could prove hard to pinpoint