Fl Court Enters $3.15M Judgment Against James in Ponzi Scheme Suit

Holding:

The Securities and Exchange Commission (“SEC”) announced that on March 23, 2009, the United States District Court for the Southern District of Florida, entered a final judgment ordering Anthony A. James to pay $2,390,487.45 in disgorgement, plus prejudgment interest of $84,620.10 and a $130,000 civil penalty in connection with his scheme to misappropriate client funds and operate a Ponzi scheme. James is the principal of James Asset Advisory, L.L.C. (“James Asset”), an investment advisory firm, which is also impleaded as a defendant in the civil suit. James had previously consented to a judgment of permanent injunction and other relief in connection with the scheme enjoining him from future violations of Section 10(b) of the Securities Exchange Act of 1934 (“Exchange Act”), and Rule 10b-5, thereunder, and Sections 206(1) and 206(2) of the Investment Advisers Act of 1940 (“IAA”). The district court entered the injunction on September 25, 2008.

Detailed Summary:

On September 24, 2008, the SEC filed a civil injunctive action against James and James Asset for misappropriating client funds and operating a Ponzi scheme.

The SEC’s complaint alleged that from at least April 2001 through January 2008, defendants received at least $5.2 million from at least 44 clients who were told by defendants that client monies would be invested in stocks, bonds, and mutual funds.

According to the complaint, defendants never invested any client funds in the stock market or other investments. Instead, James misappropriated at least $2.4 million in client monies to fund his lavish lifestyle, including the purchase…

More Updates