New York (HedgeCo.net) – Nine more people have been charged in connection with the Gryphon Holdings Inc. case, where federal prosecutors allege a $20 million hedge fund scam, according to Staten Island Live (SIlive).
Among the nine charged yesterday is an alleged Gambino crime family associate, SIlive reported. All the defendants were Gryphon sales representatives and purportedly known by other names. The defendants were each charged with wire fraud and securities fraud conspiracy; securities fraud, and investment adviser fraud conspiracy.
In April, 2010, the SEC charged the self-proclaimed, “Wolves of Wall Street,” with operating an Internet-based scam that misleads investors into paying fees for phony stock tips and investment advice from fictional trading experts.
There are 14 defendants now including hedge fund founder Kenneth Marsh. The team is charged with fraud, pretending to run a $1.4 billion hedge fund, using fake names while claiming millions of dollars in trading riches as well as claiming top-notch educational backgrounds and prominent Wall Street experience.
Gryphon frequently posted investment tips on the Internet, the SEC alleges, using at least 40 different monikers such as “Wolves of Wall Street,” “Wall Street’s Most Wanted,” “Pure Profit,” and “Mafia Trader.” In reality, Gryphon’s financial publications only served as a vehicle to attract unsuspecting investors.
According to the SEC’s complaint, Gryphon obtained more than $17.5 million from its operations over the past three years.
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