New York (HedgeCo.Net) – The SEC has charged three brokers who raised funds for an Oregon-based hedge fund manager for failing to register as broker-dealers before engaging in securities transactions.
“Broker-dealer registration is crucial to protecting investors from Ponzi schemes and other scams,” said Marc J. Fagel, Director of the SEC’s San Francisco Regional Office. Registered brokers are subject to regulatory scrutiny, supervisory review, and record-keeping requirements that greatly reduce the risk that their customers become entangled in serious frauds.”
The SEC’s investigation found that Benjamin Daniels of Indio, Calif., Dominic O’Dierno of Portland, Oregon, and Stephen Persad, of Milwaukie, Oregon, each violated the registration requirements of the federal securities laws while they served as primary points of contact between investors and a hedge fund manager named Yusaf Jawed who was charged in September 2012 of running a $37 million Ponzi scheme. They were not charged with having knowledge of or aiding and abetting Jawed’s fraud.
Daniels, O’Dierno, and Persad each agreed to settle the SEC’s charges against them.
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