Financial Advisor Charged with Operating a Ponzi Scheme

Federal prosecutors in Boston filed fraud charges against a former financial advisor, who also hosted a financial information radio program. The 13 fraud counts allege that Gregg Rennie diverted to personal use at least $3.2 million that he had persuaded clients to invest.

Allegedly, Rennie convinced clients to purchase financial instruments that he called “federal housing certificates” and guaranteed the investors a return of eight to 12 percent interest. Moreover, he told prospective investors that the investments were tax free. To entice investors Rennie provided phony prospectuses. Additionally, to prevent detection of the fraud, he provided investors with fictitious account statements and on some occasions funneled funds from new investors to those already invested intending for the payments to look like interest return on the investments.

The Securities and Exchange Commission had previously won a $4.2 million default judgment in a case against Rennie based on this scam.

For more information, please see the Boston Herald, “Ex-Radio Host, Adviser Facing Fraud Charges,” October 2, 2009.

About Richard Serafini

Welcome to my blog. I am an attorney and practice in the area of corporate trial work. Areas of particular emphasis are white collar defense, securities litigation, health care litigation, internal investigations, RICO, and financial litigation. I will be posting interesting developments in my areas of interest. I hope that you find this blog helpful and informative.