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

If you find yourself in trouble with the regulators, call Eccleston Law, you won't regret it.

Rick R.

LATEST NEWS AND ARTICLES

February 21, 2024
SEC Alleges Fraud Against Morgan Stanley and Former Executive in Block Trading Business

As reported by the Wall Street Journal, the Securities and Exchange Commission (SEC) has charged Morgan Stanley & Co. LLC and its former head of equity syndicate desk, Pawan Passi, with a multi-year fraud involving the disclosure of confidential information related to block trades.

February 20, 2024
Challenges Persist: Firms Struggle to Comply with Regulation Best Interest

FINRA's annual report for 2024 reveals a concerning trend among broker-dealers, with numerous instances of violations of Regulation Best Interest (Reg BI).

February 19, 2024
FINRA Flags Violations in 70% of Broker-Dealers' Crypto Communications

During a two-year-old targeted examination, the Financial Industry Regulatory Authority (FINRA) has identified potential violations in 70 percent of broker-dealers' communications about cryptocurrencies.