Securities Fraud: Jury Convicts Former Visium Portfolio Manager, Boston-Ex-Hilliard Lyons Broker Accused of Unauthorized Trades is Barred by FINRA, and Utah Businessman is Charged with Bilking Investors In $100M Ponzi Scam

Bond Fraud Case Leads to Conviction for Former Visium Asset Management 
A jury has convicted Stefan Lumiere, a former Visium Asset Management LP portfolio manager, of wire fraud and securities fraud. Lumiere was accused of conspiring to artificially inflate the value of a fund that was invested in debt issued by healthcare companies. Prosecutors said that his actions caused the fund’s net asset value to become overstated by tens of millions of dollars, compelling investors to pay more than they should have for the securities. They argued that Lumiere got fraudulent price quotes from brokers who worked outside the firm in order to override prices that the credit fund’s administrator had calculated. They say that he mismarked securities for years.

Ex-Former Hilliard Lyons Broker Doesn’t Appear to Testify, Gets Barred by FINRA 
Former-Hilliard Lyons broker Henry Al Dean Watson is now barred from the securities industry. Watson, who settled a customer complaint accusing him of portfolio mismanagement, making unauthorized trades, engaging in excessive trading, and getting paid too much in commissions, failed to show up to provide testimony before the Financial Industry Regulatory Authority. By not appearing before the inquiry to give testimony, the ex-Hilliard Lyons broker violated industry rules, hence the bar. He did not deny or admit to the findings but he consented to the sanction.

Watson’s BrokerCheck profile noted that he has contributed nothing to the $166,500 broker fraud arbitration award that was granted against him in 2015.

Prosecutors Charge Utah Businessman With $100M Investment Fraud
Claud R. Koerber is charged with multiple counts of fraud involving the sale and offer of securities, wire fraud, tax evasion, and money laundering. The Utah businessman is accused of running one of the largest Ponzi scams in the state.

A judge had previously thrown out a criminal case accusing Koerber of similar crimes involving the alleged investment fraud in 2014. Now, however, prosecutors are reinitiating the charges.

Koerber is accused of running Founders Capital, Franklin Squires Cos, and Franklin Squires Investments as a $100M Ponzi scam. Over $50M of investor money was purportedly used to pay earlier investors. Prosecutors contend that when the payments to investors ceased in 2007, the latter lost approximately $47M.

Contact our securities fraud law firm today. We represents investors that were the victims of Ponzi scams, unauthorized trades, excessive trading, and other kinds of investment fraud. Contact Shepherd Smith Edwards and Kantas, LTD LLP today.

Former Portfolio Manager Stefan Lumiere Convicted on All Counts In Manhattan Federal Court, DOJ.gov, January 19, 2017

Finra bars former Hilliard Lyons broker, Investment News, January 18, 2017

Feds file fraud charges against ‘Free Capitalist’Again , KSL.com, January 20, 2017

Appeals courts sends case against Rick Koerber back to judge who dismissed it, Deseret News, January 21, 2016