Manhattan’s Charles A. Bennett Charged with Conducting Ponzi Scheme, SEC Alleges

investment fraud attorneyOn December 12 the SEC charged Manhattan-based attorney Charles A. Bennett with running an alleged Ponzi scheme that defrauded some of his legal clients including family members and friends, according to recent SEC documents.

The story unfolds: Charles A. Bennett raised approximately $5 million by selling purported investments in a rosy picture of funds he painted that invested in joint ventures with a Wyoming-based investment fund to which he claimed to have a close connection, according to the aforementioned SEC documents.

The SEC goes on to tell how Bennett allegedly informed investors that their cash would mostly be used to fund investments in European real estate mortgage-backed securities with lucrative yields and rates of return ranging anywhere from 6 to 25 percent over short periods of time.

Bennett Had No Legit Connection with Wyoming-based Fund

The SEC, however, completely refutes Bennett’s side of the story, labeling it “a sham.” The fund does indeed exist, and Bennett is an acquaintance of the fund’s principal, yet he had no legitimate connection to the fund nor did he invest in any joint ventures associated with the fund or prominent individuals, the SEC notes.

As a matter of fact, the SEC reports, Bennett never made any investments, but instead misappropriated all of the money he raised from investors in a clandestine fashion. Then, out of a page from Ponzi Schemes 101, Bennett allegedly used funds from newer investors to pay redemptions and make bogus interest payments to earlier investors, the SEC disclosed.

As is sometimes the case, Bennett siphoned away investor money, and led a lavish lifestyle of vacations, expensive hotels, and substantial cash withdrawals, the SEC alleges.

Investor Rights Lawyers Investigating

The Peiffer Wolf Carr & Kane investor rights lawyers often represent investors who lose money as a result of investment misconduct or Ponzi schemes, and are assisting any victims with the recovery of losses they may have suffered. They take most cases of this type on a contingency fee basis and advance the case costs, and only get paid for their fees and costs out of money they recover for their clients.

Investors who believe they lost money as a result of Ponzi schemes may contact the investor rights lawyers at Peiffer Wolf Carr & Kane, Jason Kane or Joe Peiffer, for a free, no-obligation evaluation of their recovery options, at (585) 310-5140.

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In our legal system, every person is innocent until and unless found guilty by a court of law or a tribunal. Whenever we reference “allegations” or charges that are “alleged,” such allegations or charges have not been proven, and are merely accusations, not findings of fault, as of the date of the blog. We do not have, nor do we undertake, a duty to continue to monitor or follow cases about which we report, and/or to publish subsequent blogs regarding various developments that may occur in such cases. Readers are encouraged to conduct their own research regarding any such cases and any developments that may or may not have occurred in such cases.