Ponzi Scheme Results In Securities Fraud Charges
The former president of a company that had been controlled by a convicted Ponzi scheme operator has now himself settled securities fraud charges that had been levied against him by the U.S. Securities and Exchange Commission (SEC).
Jay Comeaux had worked in the Houston office of Stanford Group Co., a brokerage that was owned by Allen Stanford. In June, Stanford was sentenced to 110 years in prison for a Ponzi scheme he had been operating that had utilized fake certificate of deposit from his bank – named Stanford International Bank – steal money from investors.
Comeaux, who acted as a supervisor of Stanford Group’s financial consultants, allegedly received at least $1.3 million through the fraudulent sales orchestrated by Stanford. According to Reuters, Comeaux falsely inferred to investors that the bank used to issue the false certificates had a “well-diversified portfolio of highly marketable securities.”
When the SEC began pursuing Comeaux because of his alleged role in the Ponzi scheme, he settled his charges. As a result, he faces a ban from the securities industry and may face further penalties in the future.
If you or a loved one has been affected by a securities fraud scheme, there may be legal options at your disposal. Call Sokolove Law today to learn more about possible pursuing a securities fraud lawsuit.