Securities Cases : Ex-Stock Trader Allegedly Made Over $1M from Insider Trading, Investment Advisers Accused of Conflicted Transactions & Misleading Investors, and Ex-Pro Football Player Gets 40 years Behind Bars over $10M Scam

Ex-Philadelphia Eagles Player Who Bilked Former Coaches is Sentenced to 40 Years
Merrill Robertson Jr., a former Philadelphia Eagles football player, will serve 40 years in prison for a $10M fraud that bilked investors. Among his investor fraud victims were coaches he knew from when he played football at the University of Georgia and the Fork Union Military Academy.

The SEC also filed a case against him in a parallel civil case. According the regulator, Robertson, Sherman C. Vaughn Jr., and their Cavalier Union Investments diverted almost
$6M of investors’ money to pay for their own expenses and repay earlier investors.

Investment Advisers Accused of Mislead Investors About Conflicted Transactions
The US Securities and Exchange Commission has filed charges against Mohlman Asset Management, LLC, Mohlman Asset Management Fund, LLC, and Louis G. Mohlman, accusing them of misleading investors and engaging in conflicted transactions. Mohlman and the two investment advisers managed two private funds.

According to the regulator, between ’15 and ’12, Mohlman used assets from one of the private funds to issue a $150K unsecured loan, which made up about 16% of the portfolio. He then allegedly did not disclose the loan to investors even though SEC examiners told him that he should.

Mohlman also is accused of recommending to a lot of clients that they invest in his “Roth IRA Strategy.” He said that law firms and accounting firms had endorsed the strategy—a claim that the SEC contends is false. If anything, a principal at one accounting firm said there was “no way” that a recommendation would be issued and asked that the firm’s name be excluded from future communications.

Mohlman and his two investment advisers are settling the SEC charges without denying or admitting to the allegations. They agreed to pay a $100K civil penalty. Mohlman Asset Management Fund agreed to disgorge $862 in ill-gotten gains plus interest.

Insider Trading Ring Leads to Civil and Criminal Charges
Joseph Spera, an ex-day trader, is facing civil and criminal charges accusing him of engaging in insider trading. According to the Commission, Spera belonged to the insider trading ring accused of stealing confidential information from clients and investment banks. The ring allegedly used the information to trade before secondary stock offerings, with Spera accused of making over $1M in illegal profits.

Spera and ex-colleagues are accused of pretended to be portfolio managers so as to persuade investment banks to share public information regarding these pending offerings. They are said to have promised to keep the information confidential and not trade before news of the offerings became public. Instead, they tipped one another by sharing the information and they traded.

Spera’s co-conspirators were charged by the SEC last year. They were also charged in criminal court. Now, Spera has pleaded guilty to the criminal case against him, as have three of his ex-colleagues.

If you suspect that your investor losses may be due to securities fraud, please contact The SSEK Partners Group today.

Former Professional Football Player Sentenced to 40 Years for Running $10 Million Fraud, SEC, December 14, 2017

The SEC Complaint in the Mohlman Case (PDF)

The SEC Complaint in the Spera Case (PDF)

More Blog Posts:
Ex-Illinois Mayor Accused in $5.2M Municipal Bond Fraud, Institutional Investor Securities Blog, November 30, 2017

SEC Awards Two Whistleblowers $16M, Institutional Investor Securities Blog, November 29, 2017

Ex-Financial Adviser Settles Private Equity Fund Fraud Charges in Texas, Stockbroker Fraud Blog, December 8, 2017