SEC Press press_release 62 KB 2,389 chars

SEC Charges Jewelry Wholesaler with Fraudulent Securities Offering Targeting Current and Retired Police Officers and Firefighters

Release: 2020-343
Caption: Securities and Exchange Commission v. Gregory Altieri, et al.

summary

Gregory Altieri defrauded at least 80 investors, including police officers and firefighters, by operating a $69 million Ponzi scheme through LNA Associates, promising 30% to over 100% returns, misappropriating $3.8 million, and using new investor funds to pay earlier ones, leading to his guilty plea in December 2020 and SEC charges for securities fraud.

paragraph

Gregory Altieri, through his company LNA Associates, raised over $69 million from at least 80 investors by falsely claiming the funds would be used to purchase jewelry, when in fact he used new investor money to pay earlier investors and misappropriated at least $3.8 million for personal use. The SEC charged him with violating the antifraud provisions of the Securities Act of 1933 and the Securities Exchange Act of 1934, seeking disgorgement, prejudgment interest, and civil penalties. On December 30, 2020, Altieri pleaded guilty to related criminal charges in federal court, with the SEC’s investigation supported by the FBI and U.S. Attorney’s Office.

narrative

Gregory Altieri, of Melville, New York, operated a fraudulent Ponzi-like scheme through LNA Associates, raising over $69 million from at least 80 investors—including current and retired police officers and firefighters—by falsely claiming the funds would be used to acquire jewelry for a legitimate business. He promised investors guaranteed returns ranging from 30% to over 100%, but instead used the vast majority of new investor funds to pay earlier investors and conceal the scheme’s collapse. Altieri also misappropriated at least $3.8 million in investor money for personal use, further deepening the fraud. The SEC charged him with violations of the antifraud provisions of the Securities Act of 1933 and the Securities Exchange Act of 1934, seeking disgorgement, prejudgment interest, and civil penalties. On December 30, 2020, Altieri entered a guilty plea to related criminal charges in federal court. The SEC’s investigation, led by Elizabeth Butler, Jacqueline A. Fine, and Thomas P. Smith, Jr., was conducted with assistance from the FBI and the U.S. Attorney’s Office for the Eastern District of New York. The case underscores the SEC’s commitment to holding fraudsters accountable, particularly those who target vulnerable groups like first responders.

Enriched metadata

Scheme: ponzi (100%)
Court: Eastern District of New York
Outcome: pleaded
Victims: 80

Classified ponzi(confidence 100%). EDGAR detection: forms Form D· recall 35% / precision 15%. detection rule →

Extracted insights

Dollar amounts 2

$69.00M $69 million $10M–$100M
$3.80M $3.8 million $1M–$10M

Entities 9

person gregory altieri
person investor funds
person Lara S. Mehraban
scheme_term ponzi scheme red flags
person Richard R. Best
agency sec's complaint
agency sec's investigation
agency sec's office of investor education and advocacy
agency Securities and Exchange Commission

Triples 17

Securities and Exchange Commission charged Gregory Altieri
Gregory Altieri operated fraudulent Ponzi-like scheme
fraudulent Ponzi-like scheme defrauded current and retired police officers and firefighters
fraudulent Ponzi-like scheme misappropriating investor funds
SEC's complaint alleges Altieri used the vast majority of the funds to perpetuate and conceal his fraudulent scheme
Altieri used funds from new investors to pay earlier investors their anticipated returns
SEC's complaint alleges Altieri misappropriated at least $3.8 million in investor funds
Richard R. Best said As alleged in the complaint, Altieri defrauded current and former first responders and other investors who thought they were making safe investments
SEC's Office of Investor Education and Advocacy issued investor alerts on avoiding investment frauds
SEC's Office of Investor Education and Advocacy issued Ponzi scheme red flags
SEC's complaint charged Altieri with violations of the antifraud provisions of the Securities Act of 1933 and the Securities Exchange Act of 1934
SEC's complaint seeks injunctive relief, disgorgement plus prejudgment interest, and civil penalties
Altieri entered a guilty plea for related conduct before the United States District Court for the Eastern District of New York
SEC's investigation conducted by Elizabeth Butler, Jacqueline A. Fine, and Thomas P. Smith, Jr.
SEC's investigation supervised by Lara S. Mehraban
Litigation handled by Pascale Guerrier and Ms. Butler
SEC appreciates the assistance of the United States Attorney's Office for the Eastern District of New York and the Federal Bureau of Investigation

View original SEC press releasesec.gov

Extracted body text (2,389c)

The Securities and Exchange Commission today charged Gregory Altieri, of Melville, New York, for operating a fraudulent Ponzi-like scheme that defrauded current and retired police officers and firefighters, among others, and misappropriating investor funds. According to the SEC's complaint, from at least 2017 through early 2020, Altieri, through LNA Associates, an entity he owned and controlled, raised over $69 million from at least 80 investors by falsely claiming that the investments would be used to acquire jewelry for a business operated by LNA. Altieri allegedly guaranteed investors that they would quickly receive a return on their investment ranging from approximately 30% of their initial investment to, in some instances, over 100%. However, as the complaint alleges, Altieri used the vast majority of the funds to perpetuate and conceal his fraudulent scheme, using funds from new investors to pay earlier investors their anticipated returns. The complaint further alleges that Altieri also misappropriated at least $3.8 million in investor funds. "As alleged in the complaint, Altieri defrauded current and former first responders and other investors who thought they were making safe investments," said Richard R. Best, Director of the SEC's New York Regional Office. "We will continue to diligently pursue those who prey on investors and abuse their trust." The SEC's Office of Investor Education and Advocacy has issued investor alerts on avoiding investment frauds; and Ponzi scheme red flags. Additional information is available on Investor.gov and SEC.gov. The SEC's complaint, filed in federal court for the Eastern District of New York, charges Altieri with violations of the antifraud provisions of the Securities Act of 1933 and the Securities Exchange Act of 1934, and seeks injunctive relief, disgorgement plus prejudgment interest, and civil penalties. On Dec. 30, 2020, Altieri entered a guilty plea for related conduct before the United States District Court for the Eastern District of New York. The SEC's investigation was conducted by Elizabeth Butler, Jacqueline A. Fine, and Thomas P. Smith, Jr., and supervised by Lara S. Mehraban. The litigation will be handled by Pascale Guerrier and Ms. Butler. The SEC appreciates the assistance of the United States Attorney's Office for the Eastern District of New York and the Federal Bureau of Investigation.

OCR text (2,389c · html-text · 99% conf)