New York Securities Professional Charged With Fraud

Posted on July 18th, 2016 at 8:48 AM
New York Securities Professional Charged With Fraud

From the Desk of Jim Eccleston at Eccleston Law LLC:

The Securities and Exchange Commission recently charged Andrew W.W. Caspersen in connection with his role in defrauding two institutional investors into investing in a shell company by using a deceptive tactic.

According to the SEC complaint, Caspersen solicited approximately $95 million through his offering of promissory notes issued by Irving Place III SPV LLC. The SEC contends that Irving Place III SPV LLC is a shell company conceived only for the purpose of deceiving investors and not to carry out any legitimate business operations. The complaint states that Irving Place III SPV LCC was formed in order to resemble association with the similarly named, legitimate private equity fund Irving Place Capital Partners III SPV, but in reality maintained no relationship or association.

In addition, the U.S. Attorney’s Office for the Southern District of New York announced that it would bring criminal charges against Caspersen. Andrew M. Calamari said, “As alleged, Caspersen engaged in a brazen fraud by raising money under false pretenses and simply stealing the funds. This action demonstrates that even sophisticated institutional investors are not immune to financial scams.”

The SEC complaint further alleges that Caspersen obtained a $25 million investment from an institutional investor in November 2015 as a result of falsely representing that the investment would be secured by assets in Irving Place Capital Partners III SPV, which was in no way associated with Caspersen’s shell company Irving Place III SPV LLC. The complaint alleges that quickly after receiving the $25 million transfer Caspersen simply stole the funds and diverted them for his personal use.

The SEC is seeking a permanent injunction, return of ill-gotten gains plus interest, and punitive monetary penalties. 

The attorneys of Eccleston Law LLC 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. If you are in need of legal services, contact us to schedule a one-on-one consultation today.

Related Attorneys: James J. Eccleston

Tags: Eccleston, Eccleston Law, Eccleston Law LLC, James Eccleston

Return to Archive

TESTIMONIALS

Previous
Next

As a financial advisor with over 20 years of experience, I feel fortunate to call Jim my attorney and friend. He is a fantastic lawyer and trusted advisor. He is skilled in the matters necessary to do the job well. He uses his thoughtful approach and calm demeanor to achieve a positive outcome for the client. If you want to feel confident that nothing will be missed and that you will be represented in a highly professional manner, call Jim Eccleston.

Bill C. and Dan M.

LATEST NEWS AND ARTICLES

October 27, 2021
Former LPL Advisor Suspended For Completing 22 Trades Absent Client Consent

The Financial Industry Regulatory Authority (FINRA) has suspended and fined a former LPL advisor who allegedly completed 22 trades on behalf of a client without obtaining written consent. FINRA has issued a $5,000 fine and has suspended Michael Hartlett for 10 days.

October 26, 2021
Former Advisor Fails To Reverse Bar After Alleged $1 Million Theft From RBC

A former RBC Wealth Management advisor lost his bid to reverse an industry bar, according to an appellate decision issued by the Financial Industry Regulatory Authority (FINRA).

October 25, 2021
Firms Walk Thin Regulatory Line In Referring Self-Directed Clients To Advisors

While online trading platforms have surged in popularity during the pandemic, brokerage firms view self-directed investors as a source of new clients.