Legal Law

If you’ve literally written checks filled with client money for yourself, it’s probably best to come up with a defense against the resulting allegations of fraud other than an “I had no idea” pearl necklace.

Allegations of fraud can really put a strain on even the closest family relationships. And as Civil War fans can and will tell you, when you make the mistake of showing an interest in their expertise, the cruelest kind of conflict manages to play brother against brother.

This is especially true if one brother decides to sell the other upstream. And it only gets worse when the Turncoat brother, a Sean Hvizdzak of St. Marys, Pennsylvania in that filthy story, allegedly also lies about his innocence, in such an easily verifiable way that he doesn’t just take the risk brotherly relationship but a certain number of very uncomfortable years sharing a prison yard.

Both brothers allegedly diverted investor funds destined for their hedge fund to their personal accounts, who lied to CNB Bank when questioned about activities on a non-hedge fund account, instructing investors to deposit funds into their personal accounts, and the money who have favourited filing, displayed abused…. The file found that Sean Hvizdzak had written checks to himself and his brother from the accounts to which the investors’ money was sent and used the money for their personal investments.

Although Sean Hvizdzak knew financial statements were being drawn up related to the hedge fund, he continued to make it easier for investors to join the fund, the complaint said.

The SEC also cited text messages between the brothers in which the two conspired to hide fund losses from an investment advisor.

SEC amends fraud complaint against Bradford brothers [Olean Times Herald]

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