On November 23rd the U.S. SEC commenced its enforcement action by filing the following civil complaint for suspected securities fraud against Minneapolis money managers Trevor Cook and Patrick Kiley:


(To Read The SEC’s Complaint, Click On It)

As I last wrote in my  October 29th "Asset Search News Roundup", Mr. Cook and Mr. Kiley could conceivably also face money laundering charges.  If this happens, they would be following in the footsteps of other suspected Ponzi schemers who were named in SEC civil complaints and then criminally prosecuted for alleged money laundering or other suspected financial frauds.

Ponzi schemer Bernard Madoff for example, was initially sued by the SEC in a December 11, 2008 civil complaint for securities fraud.  He was then criminally charged in a March 10, 2009 eleven-count information, with concealing assets through "international" and / or other money laundering.

Accused Ponzi schemer Allen Stanford was also subjected to an SEC securities fraud complaint dated February 16, 2009.  He was next indicted for among other things, allegedly hiding assets in foreign bank accounts, in violation of 18 U.S.C. §1956 (h) (Conspiracy to commit money laundering).

As mentioned by the "Asset Search News Roundup: September 16, 2009", the late California financier Danny Pang was too suspected of a Ponzi-like securities fraud.  He was sued in an April 24, 2009 civil complaint by the SEC, and then faced criminal charges for allegedly hiding monies by structuring bank deposits in violation of  31 U.S.C. §5324.   

Copyright 2009 Fred L. Abrams