Virgin Islands fraud alleged by US officials

Calcutta News.Net
Tuesday 29th June, 2010

A $105 million Ponzi scheme that defrauded 400 investors was run in the Virgin Islands according the US Securities and Exchange Commission.

On Monday it was charged that Daniel Spitzer, 51, defrauded clients by falsely claiming to invest in foreign currencies.

According to the SEC, he allegedly invested only a fraction of the money while channelling much of it into offshore bank accounts.

Spitzer's Kenzie Financial Management Inc was incorporated in St. Thomas, where the alleged Ponzi schemer provided himself with a lavish lifestyle.

Spitzer's office office in St. Thomas recently closed down but the SEC filed its complaint in Illinois where another Spitzer company is based.

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