6.24.2009 The SEC charged Massachusetts-based investment adviser Michael C. Regan for allegedly conducting a multimillion-dollar Ponzi scheme in which he promised investors lofty returns as high as 20% but instead often stole their money for his personal use. The SEC alleges that Regan and his firm, Regan & Company, fraudulently obtained at least $15.9 million from dozens of investors nationwide by selling securities in his now defunct River Stream Fund. The SEC alleges that Regan provided fake account statements and tax forms to investors showing artificially inflated account balances and concealing that he did no securities trading at all for several years and suffered substantial losses on investments that he did make. The SEC also alleges that Regan falsely claimed that he earned an MBA from a major New York university and promoted a phony track record of successful securities trading and investment expertise. Regan is not registered as an investment adviser with the SEC or any other securities regulator.
Regan and his firm settled the SEC’s claims against them and consented to the entry of a judgment, subject to approval by the court, that enjoins them from violating or aiding or abetting future violations of the above provisions of the securities laws, orders them jointly and severally liable for more than $8.7 million in disgorgement and prejudgment interest (which will be deemed satisfied if a restitution order is entered in the parallel criminal case), and defers determination of financial penalties to a later date.
Click http://www.sec.gov/litigation/complaints/2009/comp21102.pdf to access the SEC litigation complaint.