Illinois Man Arrested for $105 Million Ponzi Scheme

Posted on March 5th, 2015 at 2:13 PM
Illinois Man Arrested for $105 Million Ponzi Scheme

From the Desk of Jim Eccleston at Eccleston Law Offices:

Daniel Spitzer, an Illinois resident, pleaded guilty for perpetrating a $105 million Ponzi scheme, bilking about 280 investors including his brother-in-law.

Spitzer used several entities and sales agents to misrepresent to investors that their money would be invested in investment funds that, in turn, would be invested primarily in foreign currencies.

Spitzer managed the Kenzie Funds, which lost $34 million from 2004 to August 2010. While his customers were falsely told that the funds never had lost money and historically had produced profitable annual returns, one year reaching over 180 percent, Spitzer instead used money raised from new investors to pay earlier investors, and misappropriated investor funds to pay unrelated business expenses. He concealed his scheme by issuing phony documents to investors which led them to believe their investments were profitable.

Spitzer has been sentenced to 25 years in jail. The SEC has frozen the assets of Spitzer and his companies.

The attorneys of Eccleston Law Offices represent investors and advisers nationwide in securities and employment matters. Our attorneys draw on a combined experience of nearly 65 years in delivering the highest quality legal services.

Related Attorneys: James J. Eccleston

Tags: Ponzi scheme, Eccleston Law, Daniel Spitzer, Financial Advisor, SEC

Return to Archive

TESTIMONIALS

Previous
Next

Hiring Eccleston Law has been one of the best career decisions I have made and this "investment" to maintain my sterling regulatory record has been returned many times over.  If you are in a situation where you've been unfairly accused, don't hesitate to talk with Eccleston Law. They are the best.

Thomas C.

LATEST NEWS AND ARTICLES

April 25, 2024
B. Riley Financial Clears Air Amid Allegations, Stock Surges

Amidst swirling speculation regarding its connections with a client linked to the Prophecy Asset Management collapse, B. Riley Financial Inc. has conducted an internal
review, concluding no affiliations with the defunct hedge fund.

April 24, 2024
RIA Insurance Claims Skyrocket

A recent analysis by Golsan Scruggs reveals a staggering 231 percent increase in errors-and-omissions (E&O) liability claims among registered investment advisor (RIA)
insurers.

April 23, 2024
Surge Predicted in Regulation Best Interest Cases

According to a recent analysis, Reg BI-related actions quickly have ascended to the top five issues for FINRA, with fines totaling $6 million in 2023.