On July 16, 2015, the Securities and Exchange Commission (“SEC”) charged Paul Lee Moore, a purported investment adviser, and Coast Capital Management, his purported investment advisory firm, with stealing nearly $2 million from investors and running a Ponzi scheme.
According to the SEC release, Paul Lee Moore and Coast Capital Management allegedly raised $2.6 million from investors. However, Moore used the money to pay for his personal expenses, such as his travels, retail goods, and the use of pornographic websites, rather than properly investing the investors’ funds. With the $625,000 that was left, Moore conducted a Ponzi scheme, paying back earlier clients with money received from his newer clients. Moore also lied about his education and previous employment experience and created fraudulent account statements, which contained securities that he did not acquire, in order to defraud his investors. When Moore’s clients showed these fake account statements to others around them, including family, friends and business associates, they, too, became clients under Moore and Coast Capital Management and victims of the Ponzi scheme.
Michele W. Layne, Director of the SEC’s Los Angeles Regional Office, said, “As alleged in our complaint, Moore betrayed his clients, brazenly stole nearly $2 million for his own activities and conducted a Ponzi scheme with the remaining funds.” Therefore, as stated in the release, the SEC is currently seeking a permanent injunction, return of the illegally-obtained money, prejudgment interest, and penalty.
Lax & Neville LLP has extensive experience in successfully prosecuting and defending claims on behalf of customers who have suffered losses, including losses incurred as a result of a Ponzi scheme. Indeed, Lax & Neville LLP has successfully represented clients in various aspects in the Madoff Ponzi scheme and defended various victims of the Agape World Ponzi scheme in the Eastern District of New York Bankruptcy Court. Further, Lax & Neville LLP has nationally represented small broker-dealers, financial services professionals and securities industry companies in regulatory matters and securities-related and commercial litigation. If you are a victim of a Ponzi scheme, please contact Lax & Neville LLP today at (212) 696-1999 to schedule a consultation.