The Chief Financial Officer of Boston Provident, L.P., an unregistered investment adviser in New York, NY, agreed to settle SEC charges that he cheated his employer firm out of nearly $3 million.  On 3/11/10, Levy, 33, pled guilty to one count of securities fraud in violation of Section 10(b) and Rule 10b-5, and one count of wire fraud in violation of Title 18 of the United States Code, Section 1343.  

During his tenure as CFO - 2000 through October 2009 - Levy in June 2009 caused his employer firm to purchase stocks at inflated prices from his personal brokerage account.  That cost the firm over $537K.  Between February 2006 and October 2009, he diverted approximately $2.45mn owed to his employer into a bank account that he controlled.  Levy then used that money on personal expenses and other things.

On 6/29/10, in criminal court, Levy was sentenced to 67 months in  prison, followed by 3 years of supervised release, and ordered to pay $3 million in restitution, fines and assessments.  [SEC IA Act Rel. 3069, 8/18]