Tags: brokers | fraud | Arjent | Pangaea

New York Brokerage Executives Indicted for Defrauding Investors

Wednesday, 20 May 2015 04:31 PM

Two brokerage executives have been indicted in New York over charges they defrauded foreign investors out of about $6.5 million through a private offering, New York prosecutors and U.S. regulators announced on Wednesday.

Manhattan District Attorney Cyrus Vance said that Robert DePalo, 60 and Joshua Gladtke, 37, executives for brokerage firms Arjent LLC and Arjent Limited and for a New York-based firm called Pangaea Trading Partners LLC, are each facing charges of larceny, money laundering, scheming to defraud and criminal possession of stolen property.

DePalo is also additionally facing criminal tax fraud charges.

The U.S. Securities and Exchange Commission also Wednesday filed parallel civil charges against the pair.

An attorney for DePalo could not be immediately reached. An attorney representing Gladtke in the criminal case declined to comment.

Prosecutors said that between July 2010 and December 2014, DePalo helped manage investors' funds as the president of Pangaea Trading Partners LLC.

Gladtke, as vice president of the company, was tasked with pitching investors, most of whom were based in the United Kingdom, to help raise funds.

U.S. officials said that in the private offering memorandums given to investors, the two defendants misled investors by failing to disclose that Pangaea held ownership interests in the pair of Arjent brokerage firms, and that they each held executive positions in those two brokerage firms.

They also failed to tell investors that DePalo was also an officer in a financial services firm called Excalibur Asset Management, which had a consulting agreement with Arjent Limited.

Prosecutors said all of the consulting fees that were paid to Excalibur went directly to DePalo. Some of the money he reaped helped pay his mortgage, luxury car payments and jewelry, government officials said.

Both Pangaea Trading Partners and Excalibur Asset Management LLC were also each indicted on related charges. Attorneys for those firms could not be immediately reached.

An attorney for the two Arjent firms, which are facing civil charges by the SEC, could not be reached immediately.

© 2017 Thomson/Reuters. All rights reserved.

 
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Two brokerage executives have been indicted in New York over charges they defrauded foreign investors out of about $6.5 million through a private offering, New York prosecutors and U.S. regulators announced.
brokers, fraud, Arjent, Pangaea
328
2015-31-20
Wednesday, 20 May 2015 04:31 PM
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