New Jersey Advisor Charged in Ponzi Scheme

Posted on December 6th, 2014 at 9:51 AM
New Jersey Advisor Charged in Ponzi Scheme

From the Desk of Jim Eccleston at Eccleston Law Offices:

Louis J. Spina, a former registered investment adviser from New Jersey, has pled guilty to operating a $20 million Ponzi scheme.

Between August 2010 and November 2013, Spina collected $20 million from 36 investors and deposited the funds into his business, LJS Trading, LLC. After receiving the funds, Spina provided each investor with a note specifying a guaranteed monthly rate of return, typically ranging from 9 to 14 percent. In fact, Spina transferred only $9.5 million of the investor funds into the trading company. He used the remaining $10.5 million, in classic Ponzi scheme fashion,  to pay the investors’ monthly interest payments, return portions of some investors’ principal, and pay his own personal expenses, including car purchases, luxury apartment rental payments, and a $400,000 donation to a private university.

When certain investors became suspicious, he reassured them by sending misleading screen shots of their account balances. Those screen shots reflected only temporary gains, not the actual losses.

In addition, Spina defrauded investors out of an additional $1.7 million by fabricating a story of a wealthy individual planning to buy LJS.

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 50 years in delivering the highest quality legal services.

Related Attorneys: James J. Eccleston

Tags: Ponzi Scheme, LJS Trading, Louis J. Spina

Return to Archive

TESTIMONIALS

Previous
Next

I am so blessed to have you and your dynamic team defending me. Your ethics, forward thinking and strategies are amazing.  You guys are the best group of attorneys in the country that I could hire to handle this complicated case.

Cindy C.

LATEST NEWS AND ARTICLES

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.

April 22, 2024
FINRA Fines Independent Broker-Dealers Over Cybersecurity Lapses

The Financial Industry Regulatory Authority (FINRA) has imposed fines and censured independent broker-dealers Osaic Wealth and Securities America for cybersecurity deficiencies that led to hackers accessing the private information of more than 32,000 customers.

April 19, 2024
WealthFeed Raises Funds for AI-Driven Lead Generation Tool

WealthFeed leverages proprietary AI technology to collect nine real-time financial data points, including business sales, capital raises, inheritances, and job changes.