SEC v. Jay Daniel Seinfeld; Sara Beth Postma; Traditions Capital Management LLC; and Hospice Patient Aid Program, Inc., No. LR-24596, Western District of Texas (Sept. 17, 2019) — Press Release
raw: Jay Daniel Seinfeld, Sara Beth Postma, Traditions Capital Management LLC, and Hospice Patient Aid Program, Inc.
Jay Daniel Seinfeld, Sara Beth Postma, Traditions Capital Management LLC, and Hospice Patient Aid Program, Inc., No. 1:19-cv-910 (Sept. 17, 2019)
summary
Jay Daniel Seinfeld, Sara Beth Postma, and their entities defrauded terminally ill patients through a fake charity, collecting hundreds of thousands of dollars in bond proceeds, and settled with the SEC for over $812,000 in disgorgement and penalties.
paragraph
Between 2010 and 2012, Seinfeld and Postma induced over a dozen terminally ill patients to purchase corporate bonds under the guise of charitable assistance, diverting hundreds of thousands of dollars in profits to themselves and wealthy investors. The defendants faced charges for violating anti-fraud provisions of the Securities Act of 1933 and the Securities Exchange Act of 1934. Seinfeld agreed to pay over $668,000 in disgorgement and penalties, while Postma agreed to pay approximately $143,000.
narrative
Jay Daniel Seinfeld, Sara Beth Postma, Traditions Capital Management LLC, and the Hospice Patient Aid Program, Inc. were charged by the SEC with orchestrating a fraudulent scheme that exploited terminally ill patients by using a fake charity to gain access to their personal information. Between 2010 and 2012, the defendants induced patients to purchase corporate bonds under the guise of charitable assistance, only to divert hundreds of thousands of dollars in profits to wealthy investors upon the patients' deaths. The defendants settled without admitting or denying the allegations, agreeing to permanent injunctions, officer-and-director bars, and combined disgorgement and penalties totaling $812,787. Seinfeld agreed to pay over $668,000 in disgorgement and penalties, including a 3-year officer-and-director bar, while Postma agreed to pay approximately $143,000 and a 2-year bar. The SEC alleged violations of Section 17(a) of the Securities Act and Section 10(b) of the Exchange Act, with the investigation aided by the FBI and DHS-HSI. The SEC also issued an investor alert warning against charitable investment scams.
Classified affinity-fraud(confidence 90%). EDGAR detection: forms Form D· recall 58% / precision 2%. detection rule →
Parties
Securities and Exchange CommissionJay Daniel SeinfeldSara Beth PostmaTraditions Capital Management LLCHospice Patient Aid Program, Inc.
Keywords
hospice patientseinfeldtraditions capitalcapital managementpostmahospicepatientaidprogramdaniel seinfeldsara bethbeth postmaseinfeld sarapostma traditionssecurities exchange
Exhibits & Attached Documents (1)
Extracted insights
Dollar amounts 4
- $413K $412,750 $100K–$1M
- $256K $256,287 $100K–$1M
- $94K $93,750 $10K–$100K
- $50K $50,000 $10K–$100K
Entities 9
- person charges against defendants
- person fake charity
- company hospice patient aid program, inc.
- person jay daniel seinfeld
- person sara beth postma
- agency Securities and Exchange Commission
- person terminally ill
- person terminally ill patients
- company traditions capital management llc
Triples 20
- SEC charges Jay Daniel Seinfeld, Sara Beth Postma, Traditions Capital Management LLC, and Hospice Patient Aid Program, Inc.
- SEC charges Jay Daniel Seinfeld, Sara Beth Postma, Traditions Capital Management LLC, and Hospice Patient Aid Program, Inc. for using a fake charity to defraud the terminally ill
- Jay Daniel Seinfeld charged with fraudulent use of fake charity
- Sara Beth Postma charged with fraudulent use of fake charity
- Traditions Capital Management LLC charged with fraudulent use of fake charity
- Hospice Patient Aid Program, Inc. charged with fraudulent use of fake charity
- SEC filed lawsuit against Jay Daniel Seinfeld, Sara Beth Postma, Traditions Capital Management LLC, and Hospice Patient Aid Program, Inc.
- Jay Daniel Seinfeld defrauded terminally ill patients
- Sara Beth Postma defrauded terminally ill patients
- Traditions Capital Management LLC used fake charity
- Hospice Patient Aid Program, Inc. used fake charity
- SEC announced charges against defendants
- September 16, 2019 filed civil action No. 1:19-cv-910
- SEC charges Jay Daniel Seinfeld, Sara Beth Postma, Traditions Capital Management LLC, and Hospice Patient Aid Program, Inc. for using a fake charity to defraud the terminally ill
- Securities and Exchange Commission Charges Defendants
- Jay Daniel Seinfeld Used Fake charity
- Sara Beth Postma Used Fake charity
- Traditions Capital Management LLC Used Fake charity
- Hospice Patient Aid Program, Inc. Used Fake charity
- Defendants Defraud Terminally Ill
PDF (from attached: complaint)
Text layers
Extracted body text (3,361c)
SEC Charges Defendants Who Used Fake Charity to Defraud the Terminally Ill Litigation Release No. 24596A / September 17, 2019 Securities and Exchange Commission v. Jay Daniel Seinfeld, Sara Beth Postma, Traditions Capital Management LLC, and Hospice Patient Aid Program, Inc., Civil Action No. 1:19-cv-910 (U.S. District Court for the Western District of Texas) filed September 16, 2019 The Securities and Exchange Commission today announced that Jay Daniel Seinfeld; his firm Traditions Capital Management LLC; a purported charity he founded, the Hospice Patient Aid Program, Inc.; and a social worker he employed have agreed to settle charges arising out of a reckless scheme to exploit terminally ill investors and then profit from their deaths. The SEC's complaint alleges that Seinfeld, who was based in New York, hired Texas-based social worker Sara Beth Postma and founded the Hospice Patient Aid Program to gain access to hospices and terminally ill patients throughout Texas. According to the complaint, between 2010 and 2012, Seinfeld and Postma induced over a dozen such patients to provide their personal information and sign transaction documents as purchasers of corporate bonds that would pay out upon their deaths while simultaneously relinquishing most of the bonds' anticipated proceeds. Using documents supplied by Seinfeld, Postma allegedly led the patients to believe that the Hospice Patient Aid Program would use bond proceeds to assist hospice patients in need of financial assistance; instead, when patient-purchasers died, Seinfeld allegedly redeemed the bonds and split a large majority of the profits - hundreds of thousands of dollars in the aggregate - with other wealthy investors. The SEC's Office of Investor Education and Advocacy (OIEA) today issued an Investor Alert encouraging investors to be wary of investments claiming to help charitable causes. In the Alert, OIEA warns that fraudsters may prey on investors' desire to help others by using charitable causes to draw victims into investment scams. The SEC's complaint, which was filed in federal court in Texas, charges Seinfeld, Postma, the Hospice Patient Aid Program, and Traditions Capital Management with violating the anti-fraud provisions of Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The defendants agreed to the settlement without admitting or denying the charges. In addition to permanent injunctive relief, Seinfeld has agreed to a 3-year officer-and-director bar and to pay $412,750 in disgorgement and prejudgment interest and a $256,287 penalty. Postma has agreed to a 2-year officer-and-director bar and to pay $93,750 in disgorgement and prejudgment interest and a $50,000 penalty. The settlements are subject to court approval. In settlement of an anticipated SEC administrative proceeding, Seinfeld has also offered to consent to securities-industry and other bars, with a right to apply for readmission after three years. The SEC's investigation was conducted by Benjamin Brutlag and James Bresnicky, with assistance from Kenneth Donnelly, and was supervised by J. Lee Buck II and Melissa Hodgman. The SEC appreciates the assistance of the Federal Bureau of Investigation and the U.S. Department of Homeland Security - Homeland Security Investigations. SEC Complaint
OCR text (3,361c · html-text · 99% conf)
SEC Charges Defendants Who Used Fake Charity to Defraud the Terminally Ill Litigation Release No. 24596A / September 17, 2019 Securities and Exchange Commission v. Jay Daniel Seinfeld, Sara Beth Postma, Traditions Capital Management LLC, and Hospice Patient Aid Program, Inc., Civil Action No. 1:19-cv-910 (U.S. District Court for the Western District of Texas) filed September 16, 2019 The Securities and Exchange Commission today announced that Jay Daniel Seinfeld; his firm Traditions Capital Management LLC; a purported charity he founded, the Hospice Patient Aid Program, Inc.; and a social worker he employed have agreed to settle charges arising out of a reckless scheme to exploit terminally ill investors and then profit from their deaths. The SEC's complaint alleges that Seinfeld, who was based in New York, hired Texas-based social worker Sara Beth Postma and founded the Hospice Patient Aid Program to gain access to hospices and terminally ill patients throughout Texas. According to the complaint, between 2010 and 2012, Seinfeld and Postma induced over a dozen such patients to provide their personal information and sign transaction documents as purchasers of corporate bonds that would pay out upon their deaths while simultaneously relinquishing most of the bonds' anticipated proceeds. Using documents supplied by Seinfeld, Postma allegedly led the patients to believe that the Hospice Patient Aid Program would use bond proceeds to assist hospice patients in need of financial assistance; instead, when patient-purchasers died, Seinfeld allegedly redeemed the bonds and split a large majority of the profits - hundreds of thousands of dollars in the aggregate - with other wealthy investors. The SEC's Office of Investor Education and Advocacy (OIEA) today issued an Investor Alert encouraging investors to be wary of investments claiming to help charitable causes. In the Alert, OIEA warns that fraudsters may prey on investors' desire to help others by using charitable causes to draw victims into investment scams. The SEC's complaint, which was filed in federal court in Texas, charges Seinfeld, Postma, the Hospice Patient Aid Program, and Traditions Capital Management with violating the anti-fraud provisions of Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The defendants agreed to the settlement without admitting or denying the charges. In addition to permanent injunctive relief, Seinfeld has agreed to a 3-year officer-and-director bar and to pay $412,750 in disgorgement and prejudgment interest and a $256,287 penalty. Postma has agreed to a 2-year officer-and-director bar and to pay $93,750 in disgorgement and prejudgment interest and a $50,000 penalty. The settlements are subject to court approval. In settlement of an anticipated SEC administrative proceeding, Seinfeld has also offered to consent to securities-industry and other bars, with a right to apply for readmission after three years. The SEC's investigation was conducted by Benjamin Brutlag and James Bresnicky, with assistance from Kenneth Donnelly, and was supervised by J. Lee Buck II and Melissa Hodgman. The SEC appreciates the assistance of the Federal Bureau of Investigation and the U.S. Department of Homeland Security - Homeland Security Investigations. SEC Complaint