Charleston investment fund manager admits to $20 million securities fraud scheme

CHARLESTON, S.C. (WCSC) – The USA Legal professional’s Workplace says a South Carolina funding fund supervisor pleaded responsible to deceptive buyers out of $20 million.

George Heckler, 64, of Charleston pleaded responsible by videoconference earlier than U.S. District Decide Madeline Cox Arleo to an data charging him with one depend of securities fraud, The USA Legal professional’s Workplace for the District of New Jersey mentioned.

Performing U.S. Legal professional Rachael A. Honig mentioned Heckler admitted his function in a scheme to fraudulently acquire over $20 million from buyers by misrepresentations about buying and selling technique and fund efficiency.

In keeping with paperwork filed on this case and statements made in court docket Heckler managed, managed or was concerned with a number of funding funds.

From 2014 to 2018, court docket paperwork state Heckler misrepresented to buyers that he would make investments their funds specifically buying and selling methods. As an alternative, the Legal professional’s Workplace says he diverted their funds out of two of his funds for functions inconsistent with buying and selling methods.

Court docket information say Heckler additionally used buyers’ funds to cowl funding losses suffered by different funds beneath his administration and/or management.

The District Legal professional’s Workplace says Heckler solicited investments from a sufferer and claimed the investments can be invested in one in all his funds that employed a “first loss” buying and selling technique supposed to guard buyers from losses.

Nevertheless, as of December 2013, legal professionals say the fund now not had a brokerage account that was essential to make use of the represented buying and selling technique. Regardless of the fund now not having a brokerage account, in 2014, Heckler represented to the sufferer that the fund was nonetheless engaged in a primary loss buying and selling technique and solicited the sufferer’s funding within the fund.

In September 2014, The Legal professional’s Workplace says the sufferer invested roughly $9.1 million within the fund, counting on Heckler’s illustration that sufferer’s cash can be invested per the fund’s first loss buying and selling technique. They are saying Heckler used $4.6 million of sufferer’s funding to repay present buyers and the rest to fulfill different obligations Heckler owed that had been unrelated to the fund.

Over the course of the scheme, Heckler despatched out statements to buyers that misled them into believing the worth of their investments was growing, when, in actual fact, the worth was declining, the District Legal professional’s Workplace mentioned. They are saying Heckler took roughly $1 million in charges and distributions from the fraudulently obtained investments for his private use.

The District Legal professional’s Workplace says the securities fraud depend carries a most penalty of 20 years in jail and a $5 million superb. They are saying the U.S. Securities and Alternate Fee has filed a civil grievance in opposition to Heckler primarily based on the allegations underlying the securities fraud cost.

Copyright 2021 WCSC. All rights reserved.

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