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Stories of Interest
- Sarah ten Siethoff is New Associate Director of SEC Investment Management Rulemaking Office
- Catherine Keating Appointed CEO of BNY Mellon Wealth Management
- Credit Suisse to Pay $47Mn to Resolve DOJ Asia Probe
- SEC Chair Clayton Goes 'Hat in Hand' Before Congress on 2019 Budget Request
- SEC's Opening Remarks to the Elder Justice Coordinating Council
- Massachusetts Jury Convicts CA Attorney of Securities Fraud
- Deutsche Bank Says 3 Senior Investment Bankers to Leave Firm
- World’s Biggest Hedge Fund Reportedly ‘Bearish On Financial Assets’
- SEC Fines Constant Contact, Popular Email Marketer, for Overstating Subscriber Numbers
- SocGen Agrees to Pay $1.3 Billion to End Libya, Libor Probes
- Cryptocurrency Exchange Bitfinex Briefly Halts Trading After Cyber Attack
- SEC Names Valerie Szczepanik Senior Advisor for Digital Assets and Innovation
- SEC Modernizes Delivery of Fund Reports, Seeks Public Feedback on Improving Fund Disclosure
- NYSE Says SEC Plan to Limit Exchange Rebates Would Hurt Investors
- Deutsche Bank faces another challenge with Fed stress test
- Former JPMorgan Broker Files racial discrimination suit against company
- $3.3Mn Winning Bid for Lunch with Warren Buffett
- Julie Erhardt is SEC's New Acting Chief Risk Officer
- Chyhe Becker is SEC's New Acting Chief Economist, Acting Director of Economic and Risk Analysis Division
- Getting a Handle on Virtual Currencies - FINRA
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NEWSLETTERS & ALERTS
Your Next-Door Neighbor Isn’t As Rich As He Seems
[Photo: 'Wealthy Neighbor - 23 Pitney Avenue, Spring Lake, NJ / Realtor.com]
by Howard Haykin
By all appearances, Richard D. was a successful and wealthy businessman. He co-founded M&R Capital, a boutique advisory firm that at present manages $457 million in client assets, and served as that firm’s Chief Operating Officer (‘COO’) for 25 years.
Yes, life was good for Richard D. - he traveled to Europe, owned a Manhattan apartment in addition to a family home in Spring Lake, New Jersey [a small well-to-do seaside community (aka “Jewel of the Jersey Shore”)] and, by his own admission, engaged in “wild” personal spending.
WHAT WENT WRONG. As CCO, Richard D. was paid a comfortable base salary and quarterly discretionary bonuses - for 2017 and 2018, his total annual compensation approximated $300,000 to $350,000. He also owned shares in the advisory firm.
From 2011 through 2018, Richard D. supplemented his ‘on the books’ earnings with $6 million that he stole from the company. He accomplished this crime by inflating his annual pay and by overbilling firm clients. The scheme collapsed in early December 2018, when an advisory client complained about overbilled fees. When questioned, Richard D. confessed to his crimes and said he had no financial ability to repay the monies he stole.
[For further details about the case, go to SEC Litigation.]