U.S. SEC charges father-daughter team with conducting Ponzi scheme

0 Comment(s)Print E-mail Xinhua, December 14, 2018
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WASHINGTON, Dec. 13 (Xinhua) -- U.S. Securities and Exchange Commission (SEC) said on Thursday that a former investment adviser and his daughter were charged with making a 7.9-million-U.S. dollar Ponzi scheme.

The SEC alleged Hector May, a former New York-based investment adviser, and his daughter Vania Bell misappropriated millions of U.S. dollars from investors. They even sent fake statements to clients in order to conceal their Ponzi scheme, said SEC.

A Ponzi scheme means an investment fraud that pays existing investors with funds collected from new investors, according to SEC.

"May lied to investors by promising to invest their money in bonds when they actually used the money to pay for personal and business expenses, as well as extravagant items, such as jewelry, furs, vacations, and a limousine driver," said SEC.

"As alleged, this father-daughter team betrayed the very people who knew and trusted them -- including family members, close friends, seniors, and local community members," said Marc P. Berger, director of the SEC's New York Regional Office.

The SEC charged May and Bell with violating the federal securities laws. The U.S. Attorney's Office for the Southern District of New York also announced parallel criminal charges against May.

So far, May has agreed to the entry of "a partial judgment" against him, according to SEC. Enditem

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