SEC Prosecutions

SEC Prosecutions

$105 Million Ponzi Scheme by U.S. Virgin Islands-Based Money Manager Halted

SEC v. Daniel Spitzer, Draseena Funds Group, Corp., Kenzie Financial Management, Inc., Kenzie Services LLC, Aneesard Management LLC, Nerium Management Co., DN Management Co. LLC, Arrow Fund, LLC, Arrow Fund II, LLC, Conservium Fund, LLC, Nerium Currency Fund, LP, Senior Strength Q Fund, LLC, Security 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, USFirst Fund, LLC

  • 2011
  • $44 Million

The SEC brought suit to obtain an emergency freeze of assets under the control of defendant Spitzer who, using a number of entities and sales agents, defrauded some 400 investors by falsely representing that their money would be invested in funds devoted to foreign currency investment. Over $100 million raised. Investors also were falsely told that Spitzer’s funds had always been profitable, including a return of over 180% one year. In reality, Spitzer invested only a fraction of the money and was operating a Ponzi scheme, and misappropriating investor money to pay unrelated business expenses. He concealed the scheme by issuing phony documents to investors that led them to believe their investments were profiting.

Named one of the top whistleblower practices/attorneys in the country by The New York Times, Wall Street Journal, NPR and The New Yorker
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