Most Recent
AdSurfDaily Agape agent American Integrity Aronson asset sales Attorney av bar reg baker bank bank of america Bankruptcy baumann bermudez black diamond blackwell bridge loan bull cattle CD celebrity cftc charity china China Voice church cityfund claims claims process clawback commission commodities commodity pool computer program congress Crown Forex currency death sentence denver diamond bar disgorgement Distribution Dodd-Frank donnan Dreier dunhill e-bullion elderly E-M Management SEC england Fairfield family FBI FDIC Fees female ponzi scheme financial advisor fine FINRA football forex fraud fufta fugitive Full Tilt gift card guilty plea GunnAllen hawaii Heckscher HSBC india invers forex janvey John Morgan JP Morgan kansas ken bell kenzie las vegas lawsuit lawyer libya Lifland machado Madoff Marian Morgan metro dream homes mets milberg millers a game Morgan European Holdings mortgage multiple schemes NCAA Net Winner new jersey notes objection Oxford Patrick Kiley paul burks PermaPave Pettengill Petters Picard poker Ponzi ponzi scheme ponzi scheme database ponzi scheme list Prime Rate profitable sunrise prosun pta puerto rico Rakoff real estate receiver receivership regulation relief defendants religion remission repeat offender restitution Rothstein RRA sec sentencing simmons sipa sipc snelling standing stanford stettin subpoena td bank telexfree treasury bonds treasury strip Tremont Trevor Cook UBS UFTA uga utah venture advisors Wachovia wilpon wire fraud woman zeek zeek rewards zeekler zeekrewards
Recent SEC Releases
« New York Investment Adviser Pleads Guilty in $2 Million Ponzi Scheme | Main | Stanford Investors: Receiver Can't Prove Stanford Operated Ponzi Scheme »

New York Ponzi Schemer Receives Thirteen Year Prison Sentence

A federal judge sentenced a New York man to thirteen years in federal prison for orchestrating a Ponzi scheme that defrauded investors out of nearly $6 million.  Guy W. Gane, 56, of Clarence, New York, faced a maximum total sentence of thirty years after previously pleading guilty to single charges of mail fraud and money laundering.  Delivering the sentence, United States District Judge William Skretny told Gane he was a "wolf in sheep's clothing."

Starting in 2005, Gane and Lorenzo Altadonna raised at least $5.7 million from the sale of fraudulent, unregistered securities transactions through two companies Gane owned, M-One Financial and Watermark Financial Services Group.  Nearly all of this amount, $5.1 million, was collected from the sale of convertible debentures issued by Watermark Financial and Watermark Holdings to approximately 90 investors, who were promised a fixed annual return of 10%.  The remainder of the funds were raised through the sale of promissory notes that advertised monthly returns ranging from 1% to 3.5%.  Investors were told that their investments would be used to purchase or develop real estate.  However, new investor funds were used not to purchase real estate, but instead to pay returns and note redemptions to old investors.  Additionally, Gane transferred nearly three million dollars to himself or family members, and over $500,000 to a Florida company Denkon Inc. for no apparent consideration. 

Both the SEC and the Justice Department filed actions against Gane and his conspirators.  The SEC filed an emergency enforcement action in May 2008 to halt Gane's fraud that resulted in a $5 million judgment.  Gane and two other individuals, James F. Lagona, 50, and Ian Campbell Gent, 58, were later charged in March 2010 in a 51-count indictment in connection with the scheme.   All were charged with mail fraud and conspiracy to commit mail fraud.  Gane was also charged with securities fraud and money laundering.  At a February 2011 trial, jurors convicted Gent and Lagona of conspiracy and mail fraud with the aid of Gane's testimony for the prosecution.

Additionally, Altadonna was sentenced in August 2010 to three years of supervised release for his role, and was also ordered ro pay $1.8 million in restitution to defrauded investors.  Total investor losses are estimated to exceed $5 million.  

A Copy of the SEC Complaint is here.

PrintView Printer Friendly Version

EmailEmail Article to Friend

References (7)

References allow you to track sources for this article, as well as articles that were written in response to this article.
  • Response
    Response: Norman Haga
    Greetings, I do believe your web site may be having browser compatibility issues. When I take a look at your website in Safari, it looks fine however when opening in Internet Explorer, it has some overlapping issues. I merely wanted to provide you with a quick heads up! Aside from that, ...
  • Response
    I used to be able to find good info from your blog posts.
  • Response
    Response: BCjeIRqa
    Ponzitracker - Ponzitracker - New York Ponzi Schemer Receives Thirteen Year Prison Sentence
  • Response
    Response: Mug Shots
    [...]below you'll find the link to some sites that we think you should visit[...]
  • Response
    see here for the top used car around
  • Response
    go here for top quality consultor seo anywhere
  • Response
    The best seo españa anywhere

Reader Comments

There are no comments for this journal entry. To create a new comment, use the form below.

PostPost a New Comment

Enter your information below to add a new comment.

My response is on my own website »
Author Email (optional):
Author URL (optional):
Some HTML allowed: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <code> <em> <i> <strike> <strong>