Tuesday, April 11, 2006
With all eyes focused on the Enron trial, it is easy to miss other cases being brought in Texas. Fraud Update links to a press release here of the US Attorney's Office for the Eastern District of Texas telling of a "lawyer has been indicted for security and wire fraud violations." The press release states that the attorney allegedly:
"lured potential investors by representing that their money would be used to purchase short-term securities from Fortune 500 companies. [He] specifically represented that he was an international mergers and acquisition lawyer who had been retained by a Fortune 500 company, that the company was in the final stages of closing a major merger or acquisition, and that the company needed short-term financing to complete the acquisition. [The lawyer] told investors that he could not identify the company because of various securities laws, and therefore the companies were identified by code names, . . .
The indictment alleges that [the attorney's] representations were false and misleading, that [he] did not represent these corporations in these transactions and that [he] spent the investors' monies on personal expenses and on payments to prior investors."