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New York Man Arrested in Investment Scheme

By Paul Napoli

February 15, 2010

Federal authorities have arrested an Albany investment broker on charges of securities fraud.

United States Attorney Richard S. Hartunian of the Northern District of New York said in a release that Christopher Bass, 52, of Menands, NY, is charged in an investment scheme that involves more than 200 investors who collectively invested more than $5,500,000.

Bass is president and chief executive officer of Swiss Capital Harbor-USA and operates under other various business names such as Revisco Finanz AG and Revisco Finance USA.

In August, federal authorities raided Bass' home and the offices of Swiss Capital Harbor–USA.

The federal complaint charged that Bass made, or caused to be made, false representations to investors regarding their investments in securities promoted, directed and managed by Bass. It also charges that Bass omitted to disclose material facts to investors regarding his use and misappropriation of investor funds, and enriched himself at the investors' expense.

Investors were told that their money would be sent to Europe where it would be pooled with other investor's money and invested in foreign stocks, bonds, 'funds', foreign exchange, commodities, futures, derivatives and in environmental projects such as power plants.

'Swiss Capital Harbor–USA (SCH-USA) is an international asset management firm placing client's assets in diverse global investment products. Our private investment firm offers clients the opportunity to invest in a secure international financial network in Lichtenstein and Switzerland. SCH-USA provides an asset management strategy utilizing international investment products that provide a high yield return. This strategy mainly involves investments in the environmental and ecological sector,' said the Swiss Capital Harbor-USA (SCH-USA) website www.sch-usa.com today.

Federal authorities believe less than 50% of the $5,500,000+ received from investors of the investment scheme was sent to Europe. The complaint alleges that the majority of the investors' deposits was disbursed to Bass or used to pay for his personal expenses; was used to repay investors who demanded a return of their initial investment and/or income allegedly earned on their investments; and was used to pay for expenses incurred in operating the investment scheme.

A February 9, 2010 Timesunion.com article reports that according to bank records reviewed by federal investigators, of the $5,500,000+ investor's money, Bass allegedly used $169,858 in the purchase his home in Menands and funneled at least another $700,000 to himself. He allegedly paid payroll expenses at Swiss Capital Harbor using $550,000, including $200,000 paid to himself and $50,000 to family members. He allegedly also spent $1.25 million repaying investors who demanded their investment back or income from their investments.

The Times Union of Albany, NY first reported in October that Bass and his company were under federal investigation for possible fraud. Numerous investors who spoke to the newspaper said they were unable to get their money back from Bass and some allegedly lost their life's savings. Read more here http://www.timesunion.com/AspStories/story.asp?storyID=898424#ixzz0ffTHJBOu

Has your stockbroker worked in your best interest? Napoli Bern & Ripka, LLP is currently handling hundreds of securities arbitrations throughout the continental United States. We represent individuals with a wide array of claims including claims of suitability, fraudulent omissions and representations, unauthorized trading, churning and negligence. Contact Napoli Bern Ripka, LLP today at 888-529-4669 and find out how the lawyers at this great practice can help you receive arbitration for your investment losses.

Originally posted at InjuryBoard by Paul Napoli

Full post as published by New York City Personal Injury Lawyer on February 16, 2010 (boomark / email).