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 are being bothered by the Regulators, call Eccleston Law, you won't regret it.

Rick R.

LATEST NEWS AND ARTICLES

July 26, 2024
Kentucky Advisor Sues LPL Financial for Alleged Corporate Raid

A Kentucky advisor, Mark Lamkin, has filed a lawsuit against LPL Financial, claiming the independent broker-dealer orchestrated a corporate raid that resulted in the loss of his firm’s entire book of managed assets.

July 25, 2024
FINRA Plans Fee Increases Amid Rising Costs and Losses

The Financial Industry Regulatory Authority (FINRA) has announced plans to raise fees for its approximately 3,300 broker-dealer member firms. According to AdvisorHub, the self-regulator faces soaring costs, as detailed in its annual report published at the end of June.

July 24, 2024
Raymond James Settles with Oregon Over Excessive Commissions

Raymond James recently settled a case with Oregon's Division of Financial Regulation (“DFR”), agreeing to pay nearly $200,000 over allegations of charging excessive commissions to retail investors.