Corporate & Securities Law

The SEC announced securities fraud charges and obtained an emergency asset freeze against Daniel Spitzer, a purported fund manager residing in North Barrington, Illinois, for operating an alleged $105 million Ponzi scheme impacting over 400 investors.  The SEC also sought charges by the following entities that were controlled by Spitzer:

• Kenzie Financial Management, Inc.;
• Kenzie Services LLC;
• Draseena Funds Group, Corp.;
• Nerium Management Co.;
• Aneesard Management LLC;
• DN Management Co. LLC;
• Arrow Fund, LLC; Arrow Fund II, LLC;
• Conservium Fund, LLC;
• Nerium Currency Fund, LLC;
• Senior Strength Q Fund, LLC;
• SSecurity Fund, LLC;
• Three Oaks Advanced Fund, LLC;
• Three Oaks Currency Fund, LP;
• Three Oaks Fund, LP; Three Oaks Fund 25, LLC;
• Three Oaks Senior Strength Fund, LLC; and
• USFirst Fund, LLC.

The SEC alleges that from 2004 through 2010, Spitzer orchestrated a fraud, using the above entities, related sales agents and third party participants, to induce investors to invest in his investment funds that purportedly were engaged in foreign currency trading.  Investors falsely were told that Spitzer?s funds had never lost money and had historically produced returns that in some cases exceeded 180 percent. 

Instead of investing this money, Spitzer created a classic Ponzi scheme by using money raised from new investors to pay earlier investors.  Spitzer also misappropriated investor funds to pay for unrelated business and personal expenses.  To conceal his fraud from investors, Spitzer created false statements that led investors to believe that their investments were actually profitable.

This fraud involved over 400 investors and over $105 million, the majority of which was used to repay investors in a Ponzi-like manner.  Spitzer used a complicated network of offshore bank accounts to pay the business expenses of his companies while living an extravagant lifestyle.

Eccleston Law represents individual and institutional investors to recover their investment losses caused by securities and investment fraud, directly against the wrongdoer as well as indirectly against individuals and firms that referred investors. Our attorneys also help victims of Ponzi schemes pursue recovery by submitting claims with receiverships established by the SEC and by assisting victims with the filing of a Theft Loss Tax Deduction with the IRS.

If you have lost money investing with Daniel Spitzer or any of his entities, or have information about this Ponzi scheme, please contact Jim Eccleston at the Eccleston Law Offices at 312-332-0000.