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SEC Charges Middlesex Mortgage Group and Masanotti with Running $5.9 Million Ponzi Scheme The U.S. Securities and Exchange Commission (“SEC”) has alleged that unregistered investment adviser John A. Masanotti, Jr. (“Masanotti” of Darien, Connecticut and his company, Middlesex Mortgage Group LLC (“MMG”), with fraud in connection with investments that MMC induced from outside investors, totaling least $5.9 million, beginning in 2016. Many of the MMG investors allegedly liquidated securities they held in retirement accounts to invest in the fund. The SEC Complaint is accessible here. According to the SEC. MMC and Masanotti allegedly used investor money to make Ponzi-like payments to investors and also used some investor funds for Masanotti’s “extravagant personal expenses,” According to the SEC, Masanotti told investors that MMC would invest their money in foreign currencies, securities and initial public offerings, but in fact MMC appears to have made no investments on their behalf. After receiving their initial payments, Masanotti continued to deceive investors to perpetuate the investment scheme, including via payments that purported to be returns on capital invested, the SEC said. Over the course of the scheme, Masanotti allegedly used more than $3 million of Middlesex’s assets for his and his family’s personal benefit, according to the suit. The SEC accuses Masanotti of violating the Securities Act and the Exchange Act. A Ponzi scheme is a purported investment vehicle in which early investors in the scheme are paid funds from later investors, thus creating the illusion of legitimacy and solvency. Ponzi schemes are often doomed to failure once the perpetrator of the scheme can no longer pay out investors through newly raised money. Some warning signs that every investor should remain mindful of when vetting a potential investment and conducting due diligence include the promise of high returns with guarantees of little or no risk; overly consistent returns with little or no volatility in the in
14 Nov 2023, 4:30 pm by InvestorLawyers
Securities and Exchange Commission (“SEC”) has alleged that unregistered investment adviser John A. [read post]
14 Nov 2023, 6:31 am
G A U G I N G  T H E  C L I M A T E The vast majority of “say on golden parachute” proposals have been submitted by well-known corporate governance activists John Chevedden and/or Kenneth Steiner. [read post]
14 Nov 2023, 6:31 am
G A U G I N G  T H E  C L I M A T E The vast majority of “say on golden parachute” proposals have been submitted by well-known corporate governance activists John Chevedden and/or Kenneth Steiner. [read post]
13 Nov 2023, 12:10 pm by Thomas B. Griffith
Circuit issued no opinions last week, but gathered en banc in the Ceremonial Courtroom of the U. [read post]
5 Nov 2023, 10:00 am by Eugene Volokh
He made an illegal U-turn and cut off the route of several rally participants who were lawfully crossing the street in the crosswalk. [read post]
26 Oct 2023, 8:13 am by Tom Kosakowski
(Coastal Jobs.)Related posts: New Ombuds Program at Coastal Carolina U.; Coastal Carolina University Ombuds Issues Report; Coastal Carolina University Names Next Faculty Ombuds; Job Posting. [read post]
12 Oct 2023, 6:31 am
INT R O D U CT I O N The first half of 2023 saw a significant increase in the number of shareholder proposals calling for an independent board chair that went to a vote. [read post]
12 Oct 2023, 6:31 am
INT R O D U CT I O N The first half of 2023 saw a significant increase in the number of shareholder proposals calling for an independent board chair that went to a vote. [read post]
10 Oct 2023, 9:01 pm by renholding
Although better than the proposed rule,[1] the final beneficial ownership reporting rule continues to rest on flawed economics. [read post]
6 Oct 2023, 6:39 am
The straining of cameras on hooligans entailed a changed relation to space, which is explored in John King’s novel The Football Factory, adapted to the screen in 2004. [read post]
6 Oct 2023, 6:36 am by Christine Corcos
The straining of cameras on hooligans entailed a changed relation to space, which is explored in John King’s novel The Football Factory, adapted to the screen in 2004. [read post]
25 Sep 2023, 7:31 am by Faiza Patel
According to Senator Amy Klobuchar [D-MN], she and Senator John Thune [R-SD] are planning to introduce a bill to do just that, with the Commerce Department tasked with oversight. [read post]