Man charged with theft of $1 million from relative January 5, 2010
Posted by jefhenninger in News.Tags: misconduct by a corporate official, theft
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Samuel Franco of Brooklyn has been indicted for failure to make required disposition of property received, misconduct by a corporate official and misapplication of entrusted property in Monmouth County. The indictment also charged his company, Signature Investment Holdings LLC of Ocean Township, with failure to make required disposition of property received.
He is alleged to have made an agreement with a relative of his in August 2005 to invest $1 million in the purchase and sale of European bank instruments, such as bonds, certificates of deposit and notes. The agreement guaranteed the client would earn a 20 percent profit by December 2005.
By the end of 2005, the client did not receive his initial investment or the interest and in 2006, Franco made many claims that he would return the initial investment and the profits. An audit of a bank account associated with the firm showed none of the money went to any of the investment accounts and that Franco used the firm’s account to pay personal expenses such as the remodeling a Florida condominium and monthly payments to Mercedes Benz and American Express.
This is what gets everyone. Using personal expenses from the company account is generally a bad idea. Assuming this is all true, what account signed off on all this? As always, I wonder why this guy got indicted. Half the time, there is no reason for it.
Story is here.
White Collar Crime News 
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