Ponzi scheme operator to pay $2.6 million

By Palm Beach Business.com Staff

MIAMI — A Parkland investment advisor who ran what the Securities and Exchange Commission called a classic Ponzi scheme has to pay nearly $2.6 million in penalties, a federal court judge ordered Monday.

Judge Cecilia M. Altonaga ordered Anthony A. James to surrender $2.4 million in illegal profit, interest of $84,620 and a $130,000 civil penalty in connection with his scheme.
James previously had agreed to a permanent injunction that banned him from violating federal securities laws.
According to the SEC, James and his firm, James Asset Advisory, took at least $5.2 million from 44 clients, supposedly to invest the money in stocks, bonds, and mutual funds.

James instead pocketed almost $2.4 million, buying a six-bedroom, 5,000-square-foot home, a luxury condominium, a Porsche, and season tickets to the Miami Heat games. James is under criminal indictment in the Eastern District of .

Moreover, like a classic Ponzi scheme, James transferred about $2.8 million from new clients to older clients to repay principal or to create the illusion of profitable trading. James also provided his clients with false account statements reflecting securities holdings and returns that did not exist.

Last month the SEC dropped James’ firm from the suit because it is out of business and has no assets.

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MARCH 23, 2009 click to go home
 
     
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