Anyone hear of this bunch in South Florida?
International Capital Management?
Florida officials crack down on securities scams
By Frances Kerry
MIAMI (Reuters) - South Florida law enforcement agencies Thursday announced criminal proceedings against
suspects in four separate financial scams and launched a drive to crack down on illegal securities schemes
that pose particular risks for the state's large population of retirees.
"Securities fraud has grown to near epidemic proportions, targeting the most vulnerable members of our
community," U.S. Attorney Guy Lewis told a news conference.
The initiative against securities fraud, involving federal agencies including the FBI and the U.S. Securities and
Exchange Commission, aims to hunt down and prosecute scam artists who tout get-rich schemes that turn out
to be worthless.
South Florida, from Palm Beach County to Miami, is heavily populated with elderly people living in
condominiums and retirement communities along the coast.
Lewis said securities fraud had escalated with increasing use of the Internet, a "growing sophistication of white
collar criminals" and the popularity of stock market investment.
He cited the case of a Palm Beach couple in their 70s who lost their entire life savings of $250,000 in a recent
fraud.
In another scam detailed by Lewis, four suspects indicted
multiple counts of mail and wire fraud and money laundering, were accused of running a fraudulent foreign
currency investment scheme that raised over $18 million from 1,800 participants throughout the United
States.
The suspects, who face up to 20 years in prison if convicted, ran a Pompano Beach company called
International Capital Management which marketed its business though aggressive phone calls and brochures.
Among the fraudulent claims made by the firm was one that it had generated a 58 percent average return
over the last four years. The company had existed for only a few months and had never generated any such
returns.
"They had smooth-talking salespeople who got people to invest thousands of dollars in the foreign exchange
market," Lewis said.
Other cases included a classic "pump-and-dump" scheme in which the manager of a stockbroking firm
allegedly made a $422,000 profit from selling near worthless stock to unsuspecting victims to pump up its
value.
The suspect and co-conspirators operating in Palm Beach, sold the stock at profit, triggering a price fall that
left those who had bought the shares with nothing.
The main suspect was indicted earlier this week on charges of conspiracy, securities fraud and money
laundering.
Lewis said the region's new multi-agency task force on securities fraud was only the third in the United States,
following similar initiatives in New York and San Francisco.
14:22 01-11-01 |
