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Massachusetts man charged in $9.6M fraud December 27, 2010

Posted by jefhenninger in News.

A Massachusetts man is accused defrauding more than 50 people by  running a Ponzi-style scheme with their $9.6 million.  Randy M. Cho allegedly told investors he was a self-employed securities trader who had a special relationship with Goldman Sachs and could buy discounted shares of well-known companies such as Google, Facebook and Rosetta Stone before their initial public offerings.  In one case, Cho allegedly told an investor he could buy 20,000 shares of Google at $1 each, when shares were publicly trading at $425 or more each.  Shouldn’t that raise a red flag there?

From 2001 to 2009, Cho allegedly collected more than $9.6 million from domestic and foreign investors. To keep his scheme going, Cho used more than $1.5 million from new investors to make payments to existing investors.  All together, investors lost nearly $8 million.  He was charged with one count of wire fraud and one count of filing a false federal income tax return for 2005, when he reported a total income of $118,475 but received nearly $1.2 million.

Like most of these cases, a civil lawsuit was filed.  In that case, Cho was order to repay the nearly $8 million he took from investors, plus $289,320 in interest, and was fined $150,000.

Story is here.

Belmar Criminal Defense Lawyers

Cho’s lawyer, Jim Marcus, said he’ll review the charges before deciding what to do.


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