SEC Charges Additional Defendant in Phony Certificates of Deposit Scam
summary
Allen C. Giltman, a former registered investment professional, allegedly participated in a long-running scheme to sell fictitious certificates of deposit, resulting in losses of at least $40 million, and has consented to permanent and conduct-based injunctions.
paragraph
Allen C. Giltman allegedly orchestrated a scheme to sell fictitious, FDIC-insured CDs to primarily older investors, resulting in losses of at least $40 million. Giltman used internet ads, phony websites, and impersonated registered representatives to lure victims into wiring funds to bank accounts, which were then misappropriated. He has been charged with violating the antifraud provisions of federal securities laws and has consented to permanent and conduct-based injunctions.
narrative
Allen C. Giltman, a former registered investment professional, allegedly participated in a long-running scheme to sell fictitious certificates of deposit to primarily older investors, resulting in losses of at least $40 million. Giltman used internet ads targeting retirees seeking high-yield CDs, directed victims to fake sites mimicking real institutions, and convinced them to wire funds to accounts he controlled. He impersonated registered representatives and misappropriated the money while evading detection by using victims' identities to anonymize his digital activity. In March 2020, co-conspirator Denis Sotnikov was also charged, and Giltman has since pled guilty in a parallel criminal case brought by the U.S. Attorney's Office for the District of New Jersey. The SEC's civil complaint seeks permanent injunctions, disgorgement of ill-gotten gains with interest, and civil penalties, with monetary relief to be determined by the court. The investigation was led by the SEC's Cyber Unit and supported by the Financial Industry Regulatory Authority.
Classified affinity-fraud(confidence 90%). EDGAR detection: forms Form D· recall 58% / precision 2%. detection rule →
Statutes
15 U.S.C. § 77q(a)
Parties
Allen C. Giltmananita b. bandydeborah tarasevichDouglas McAllisterelizabeth doisyfraudulent schemejames connorjohn bowerskristina littmanmartin zerwitzpaul kimsec complaintsec investigationSecurities and Exchange CommissionU.S. Attorney's Office for the District of New Jersey
Keywords
secgiltmancertificates depositphony certificatesschemeinvestorsphonycertificatesdepositcdswebsitesadditional phonydeposit scamolder adultswebsites giltman
Exhibits & Attached Documents (1)
Extracted insights
Dollar amounts 1
- $40.00M $40 million $10M–$100M
Entities 16
- person Allen C. Giltman
- person anita b. bandy
- person deborah tarasevich
- person Douglas McAllister
- person elizabeth doisy
- person fraudulent scheme
- person james connor
- person john bowers
- person kristina littman
- person martin zerwitz
- person paul kim
- agency sec complaint
- agency sec investigation
- agency Securities and Exchange Commission
- agency U.S. Attorney's Office for the District of New Jersey
- court u.s. district court for the district of new jersey
Triples 23
- SEC charged Allen C. Giltman with participating in fraudulent scheme
- Allen C. Giltman participated in long-running fraudulent scheme to lure investors into buying fictitious CDs
- Fraudulent scheme resulted in victims losing at least $40 million
- Allen C. Giltman purchased internet ads targeting investors searching for CDs with high interest rates
- Allen C. Giltman helped create phony websites mimicking existing financial institutions
- Allen C. Giltman impersonated registered representatives at legitimate firms
- Allen C. Giltman instructed victims to wire funds to domestic or foreign bank accounts
- Allen C. Giltman received portion of investor funds
- Allen C. Giltman used identities of victims to register for online services
- SEC charged Denis Sotnikov in March 2020
- SEC filed complaint in U.S. District Court for the District of New Jersey
- SEC complaint charges Giltman with violating antifraud provisions of federal securities laws
- Allen C. Giltman pled guilty in parallel criminal case
- U.S. Attorney's Office for the District of New Jersey announced Giltman pled guilty in parallel criminal case
- Elizabeth Doisy conducted SEC investigation
- Douglas McAllister conducted SEC investigation
- Martin Zerwitz conducted SEC investigation
- Deborah Tarasevich conducted SEC investigation
- Paul Kim conducted SEC investigation
- Kristina Littman supervised SEC investigation
- Anita B. Bandy supervised SEC investigation
- James Connor led litigation
- John Bowers led litigation
PDF (from attached: complaint)
Text layers
Extracted body text (3,089c)
The Securities and Exchange Commission today charged Allen C. Giltman, a former registered investment professional, with allegedly participating in a long-running fraudulent scheme to lure investors into buying fictitious certificates of deposit (CDs). The scheme resulted in victims, primarily older adults investing their retirement savings, losing at least $40 million. According to the SEC’s complaint, Giltman purchased internet ads targeting investors searching for CDs with high interest rates. The ads allegedly included links to phony websites Giltman helped create, many of which mimicked those of existing financial institutions, in order to offer investors fictitious CDs, which the websites falsely claimed were FDIC-insured. As alleged in the SEC’s complaint, when investors called the phone numbers listed on the websites, Giltman impersonated registered representatives at the legitimate firms and instructed victims to wire funds to domestic or foreign bank accounts, purportedly to purchase the CDs. The SEC alleges that investor funds were then misappropriated as part of the scheme, with Giltman receiving a portion of the funds. The SEC also alleges that Giltman used a variety of methods to evade detection, including attempting to anonymize his digital footprint by using the identities of victims to register for online services used in the scheme. In March 2020, the SEC charged another alleged participant in the scheme, Denis Sotnikov. “Protecting retirees and older adults reliant on their investments is one of the most important missions of the Commission,” said Anita B. Bandy, Associate Director of the SEC’s Division of Enforcement. “We will continue to use every tool available to hold bad actors who use elaborate means to avoid detection accountable for preying on U.S. investors.” The SEC’s complaint, filed in the U.S. District Court for the District of New Jersey, charges Giltman with violating the antifraud provisions of the federal securities laws and seeks permanent injunctive relief, the return of allegedly ill-gotten gains with prejudgment interest, and a civil penalty. Giltman has consented to permanent and conduct-based injunctions, with monetary relief to be decided later by the court. The U.S. Attorney’s Office for the District of New Jersey today announced that Giltman pled guilty in a parallel criminal case. The SEC’s investigation was conducted by Elizabeth Doisy and Douglas McAllister, as well as Martin Zerwitz, Deborah Tarasevich, and Paul Kim of the SEC Enforcement Division’s Cyber Unit. Donato Furlano and Peter Rosario assisted with the investigation. The investigation was supervised by Kristina Littman, Chief of the Cyber Unit, and Ms. Bandy. The litigation will be led by James Connor and John Bowers. The SEC appreciates the assistance of the Financial Industry Regulatory Authority. To learn more about how to protect yourself from fraud, please visit these previously issued SEC investor alerts: Beware of Spoofed Websites Offering Phony Certificates of Deposit Fraudsters Posing as Brokers or Investment Advisers
OCR text (3,089c · html-text · 99% conf)
The Securities and Exchange Commission today charged Allen C. Giltman, a former registered investment professional, with allegedly participating in a long-running fraudulent scheme to lure investors into buying fictitious certificates of deposit (CDs). The scheme resulted in victims, primarily older adults investing their retirement savings, losing at least $40 million. According to the SEC’s complaint, Giltman purchased internet ads targeting investors searching for CDs with high interest rates. The ads allegedly included links to phony websites Giltman helped create, many of which mimicked those of existing financial institutions, in order to offer investors fictitious CDs, which the websites falsely claimed were FDIC-insured. As alleged in the SEC’s complaint, when investors called the phone numbers listed on the websites, Giltman impersonated registered representatives at the legitimate firms and instructed victims to wire funds to domestic or foreign bank accounts, purportedly to purchase the CDs. The SEC alleges that investor funds were then misappropriated as part of the scheme, with Giltman receiving a portion of the funds. The SEC also alleges that Giltman used a variety of methods to evade detection, including attempting to anonymize his digital footprint by using the identities of victims to register for online services used in the scheme. In March 2020, the SEC charged another alleged participant in the scheme, Denis Sotnikov. “Protecting retirees and older adults reliant on their investments is one of the most important missions of the Commission,” said Anita B. Bandy, Associate Director of the SEC’s Division of Enforcement. “We will continue to use every tool available to hold bad actors who use elaborate means to avoid detection accountable for preying on U.S. investors.” The SEC’s complaint, filed in the U.S. District Court for the District of New Jersey, charges Giltman with violating the antifraud provisions of the federal securities laws and seeks permanent injunctive relief, the return of allegedly ill-gotten gains with prejudgment interest, and a civil penalty. Giltman has consented to permanent and conduct-based injunctions, with monetary relief to be decided later by the court. The U.S. Attorney’s Office for the District of New Jersey today announced that Giltman pled guilty in a parallel criminal case. The SEC’s investigation was conducted by Elizabeth Doisy and Douglas McAllister, as well as Martin Zerwitz, Deborah Tarasevich, and Paul Kim of the SEC Enforcement Division’s Cyber Unit. Donato Furlano and Peter Rosario assisted with the investigation. The investigation was supervised by Kristina Littman, Chief of the Cyber Unit, and Ms. Bandy. The litigation will be led by James Connor and John Bowers. The SEC appreciates the assistance of the Financial Industry Regulatory Authority. To learn more about how to protect yourself from fraud, please visit these previously issued SEC investor alerts: Beware of Spoofed Websites Offering Phony Certificates of Deposit Fraudsters Posing as Brokers or Investment Advisers