U.S. District Attorney David Fein has begun to make good on his promise to prosecute securities-fraud cases.
Fein, who has held the office for a year, said securities fraud has not traditionally been a priority in the state. However, he cited a need for strong enforcement given the growing presence of international banking and finance in Fairfield County and the region. Six months ago Fein formed the Connecticut Securities, Commodities and Investor Fraud Task Force.
He most recently investigated Michael Goldberg of Wethersfield for running a Ponzi scheme that swindled investors out of $30 million. After pleading guilty last year to charges of wire fraud, Goldberg was recently sentenced to 10 years in prison.
Last week Fein met with a group of financial investment industry leaders at the Greenwich Hyatt at an event was hosted by Greenwich-based Managed Funds Association, a group that represents the global alternative investment industry.
Stuart Kaswell, director of the association, said the event was held to promote public trust within the industry.
“We know that some people don”™t play by the rules and we don”™t want them in our business,” Kaswell said.
He said the industry leaders themselves have to set standards for integrity and responsibility.
Sitting on the board at the event were representatives of the Securities and Exchange Commission, the Federal Bureau of Investigation and members of Fein”™s staff.
Fein”™s task force also has been responsible for the investigation that led to New Canaan resident Francisco Illarramendi pleading guilty in March to fraud and conspiracy in connection with a hedge fund he advised losing of millions of dollars, and for Galleon Group co-founder and Greenwich resident Raj Rajaratnam”™s conviction earlier this month on 14 counts of fraud and conspiracy in the largest insider-trading case in U.S. history.
Fein said it”™s important to move quickly on these cases. “Expect short-term turnarounds on subpoenas and tough penalties,” he said.
