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New York Ponzi Scheme

According to the FBI's press release about a new Ponzi scheme,

"MICHAEL J. GARCIA, the United States Attorney for the Southern District of New York, announced today the indictment of HAYIM REGENSBERG on securities and wire fraud charges stemming from an alleged $11 million "Ponzi" scheme involving purported international initial public offering ("IPO") and othe investment products he marketed to investors from New York City and elsewhere.

REGENSBERG was previously arrested on November 14, 2007 on a federal criminal Complaint.

According to the Indictment and Complaint filed in Manhattan federal court:

REGENSBERG engaged in a scheme to defraud multiple investors by falsely promising to invest their money in one of two ways.

One method involved his claim that he had access to IPO issuances on foreign stock exchanges before the general public, and that he would invest money in international IPO stock that would be sold in the public market at the earliest possible moment thereafter, thereby obtaining for his investors quick returns of between approximately 5 percent and 15 percent within weeks of the IPO, with little or no risk to the invested capital.

REGENSBERG told investors that he had used the same international IPO investment strategy successfully in the past, and had a consistent and highly positive investment track record in such investments. In fact, REGENSBERG did not invest the investor funds as represented."

This is the standard "inside information" fraud. Yellow Kid, and other con artists, used to bilk marks pitching their inside information.

Only the marks who wanted something for nothing got caught up in the pitch.

Full post as published by Misleading Advertising Law on March 16, 2008 (boomark / email).