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A hooded man holds a laptop computer as blue screen with an exclamation mark is projected on him in this illustration picture taken on May 13, 2017. Idris Dayo Mustapha, 33, pleaded guilty to access device fraud, conspiracy to commit computer intrusion and securities fraud, and conspiracy to commit wire fraud at a hearing before U.S. District Judge Pamela Chen in Brooklyn. Mustapha, a native of Lagos, Nigeria, had been arrested in the United Kingdom in August 2021, and was extradited to the United States in August. The case is U.S. v. Mustapha, U.S. District Court, Eastern District of New York, No. Reporting by Jonathan Stempel in New York; Editing by Cynthia OstermanOur Standards: The Thomson Reuters Trust Principles.
Persons: Idris Dayo Mustapha, Pamela Chen, Mustapha, Jonathan Stempel, Cynthia Osterman Organizations: U.S . National Security Agency, Nigerian, U.S, Prosecutors, Court, Eastern District of, Thomson Locations: British, New York, Brooklyn, Mustapha, Lagos, Nigeria, United Kingdom, United States, U.S, Eastern District, Eastern District of New York
Police guard the courthouse of United States District Court for the Eastern District of New York in Brooklyn, New York, U.S., November 5, 2018. Lukas lodged a lawsuit in federal court in New York on Monday against the Portuguese actor, now 45, who starred in the Netflix mystery thriller series White Lines. Lukas, who directed romantic comedy Hollidaysburg, filed her claim under New York's Adult Survivors Act, which expires on Thursday. Lukas had a forensic examination for sexual assault done the day after the incident at a hospital and "reported the rape to the police," the court filing says. Lukas' case was filed in the U.S. District Court for the Eastern District of New York.
Persons: Eduardo Munoz, A.M, Lukas, Nuno Lopes, drugging, Lopes, Wigdor, Catarina Demony, Aislinn Laing, Bernadette Baum Organizations: Police, States, Court, Eastern, of, REUTERS, LISBON, Netflix, Reuters, Tribeca, Thomson Locations: of New York, Brooklyn , New York, U.S, Portuguese, New York
A former fundraiser for U.S. Rep. George Santos pleaded guilty Tuesday to a federal wire fraud charge, admitting he impersonated a high-ranking congressional aide while raising campaign cash for the embattled New York Republican. Miele is the second campaign aide to Santos who took a plea deal in a federal probe. Federal prosecutors say Santos wired some of the money to his personal bank account and used the rest to pad his campaign coffers. Santos has pleaded not guilty to the charges against him and has vowed to clear his name. Santos also recounted what he believed was an attempt by Miele last summer to try to rejoin Santos' campaign.
Persons: George Santos, Sam Miele, Dan Meyer, Kevin McCarthy, Meyer, Miele, Santos, , Kevin Marino, Marino, ” Miele, Nancy Marks, Marks, ” Santos, Prosecutors Organizations: U.S . Rep, New York Republican, Republican, Federal, U.S, Eastern, of, Federal Elections Commission, Republican Party, Associated Press Locations: Santos, Peace, U.S, of New York, Queens, Long,
Those borrowers could be eligible for $16 million in relief if they submit a claim by November 20. AdvertisementAdvertisementThousands of student-loan borrowers have one week to benefit from a recent settlement with a major private lender. In July, Navient agreed to a $198 million settlement with private student-loan borrowers who claimed the lender continued to collect on debts that should have been discharged in bankruptcy. Navient denied any wrongdoing when it agreed to $182 million in debt relief for impacted borrowers, along with $16 million in cash for a settlement class of 4,607 borrowers. AdvertisementAdvertisementBorrowers included in the settlement class have until November 20 to take part in the $16 million in cash relief.
Persons: Navient, Organizations: Service, Navient, Court, Eastern, of Locations: of New York
Federal prosecutors in New York on Wednesday announced the arrests of 10 men allegedly belonging to or associated with the Gambino Mafia family, as well as the arrests in Italy of six other alleged organized crime members and associates. Prosecutors said the Brooklyn defendants, who are charged in a 16-count indictment, committed those crimes as part of an effort to dominate New York's carting and demolition industries. It previously was led by the late notorious boss John Gotti, who died in a federal prison in Missouri in 2002. The defendants arrested in New York on Wednesday included the alleged Gambino captain Joseph "Joe Brooklyn" Lanni. Prosecutors said the arrests were part of a coordinated operation with Italian law enforcement, who arrested the six defendants in Italy on charges that include mafia association and related offenses.
Persons: Gambino, Prosecutors, John Gotti, Joseph, Joe Brooklyn, Diego, Danny, Tantillo, Angelo Gradilone, Fifi, James LaForte, Vito Rappa, Francesco Vicari, Ciccio, Salvatore DiLorenzo, Robert Brooke, Kyle Johnson, Vincent Minsquero, Vinny Slick Organizations: Attorney's, Eastern, of, Federal, Wednesday, Gambino Mafia, Cosa Nostra, Mafia, CNBC PRO Locations: Brooklyn, of New York, New York, Italy, Missouri, Lanni, U.S
Three people were arrested in New York City on Tuesday on charges of illegally smuggling millions of dollars' worth of electronics to Russia in order to aid the country's invasion of Ukraine. Federal prosecutors in Brooklyn accused Nikolay Goltsev, Salimdzhon Nasriddinov and Kristina Puzyreva of evading sanctions in order to send Russia equipment used in their precision-guided missile systems. The defendants allegedly dispatched hundreds of shipments of restricted items, worth nearly $7.2 million, to Russia over the course of a year. The complaint alleges that the defendants used two corporate entities to source and purchase dual-use electronics from U.S. manufacturers and distributors, and then secretly export them to Russia. Some of the same types of components were found in Russian weapons platforms and signals intelligence equipment that were seized in Ukraine, prosecutors alleged.
Persons: Nikolay Goltsev, Salimdzhon Nasriddinov, Kristina Puzyreva, Nick Stevens, Matthew Olsen Organizations: Attorney, Eastern, of, Prosecutors, United Arab, Justice Department's National Security Division Locations: Brooklyn, New York City, Russia, Ukraine, U.S, of New York, Tajikistan, Goltsev, Montreal, Manhattan, Russian, Turkey, Hong Kong, India, China, United Arab Emirates, Vitebsk
A Trump-supporting social media influencer was sentenced to seven months in prison for conspiring to suppress the votes of possibly thousands of people who supported former Secretary of State Hillary Clinton in the 2016 presidential election. Douglass Mackey, who was 33 when he was convicted in March, was also ordered to pay a $15,000 fine. Mackey made podcast appearances and social media posts about those beliefs, prosecutors said. Prosecutors said that 99% of the texts received by that number were sent after Mackey first posted a deceptive Hillary advertisement from one of his social media accounts. Andrew Frisch, Mackey's attorney, told CNBC he remained "optimistic" about Mackey's prospects on appeal, which has not yet been taken up.
Persons: influencer, Hillary Clinton, Douglass Mackey, Mackey, Ricky Vaughn, Hillary, Andrew Frisch Organizations: States, Court, Eastern, of, Trump, Prosecutors, CNBC Locations: of New York, Brooklyn, United States
Federal prosecutors on Tuesday filed a significant array of additional charges against Representative George Santos of New York, accusing him of new criminal schemes, including stealing the identities and credit card details of donors to his campaign. The new accusations were made in a 23-count superseding indictment that laid out how Mr. Santos had charged his donors’ credit cards “repeatedly, without their authorization,” distributing the money to his and other candidates’ campaigns and to his own bank account. The new indictment filed in the Eastern District of New York added 10 charges against Mr. Santos: conspiracy to commit offenses against the United States, wire fraud, aggravated identity theft, access device fraud, false statements to the Federal Election Commission and falsifying records to obstruct the commission. The accusations against Mr. Santos, a first-term Republican of New York, seem vastly different from the typical corruption cases that ensnare politicians. Many of those have hinged on intricate quid pro quos and complex legal questions about the nature of a political bribe.
Persons: George Santos, Santos, Organizations: of, Federal Locations: George Santos of New York, Eastern, of New York, United States, New York
New York Rep. George Santos Faces 10 New Charges
  + stars: | 2023-10-10 | by ( Kaia Hubbard | Oct. | At P.M. | ) www.usnews.com   time to read: +2 min
Rep. George Santos, the embattled freshman Republican known for fabricating large portions of his resume, was charged Tuesday on 10 new criminal counts, including conspiracy, falsification of records, aggravated identity theft and credit card fraud. Federal prosecutors filed a 23-count superseding indictment that comes after Santos pleaded not guilty to 13 charges from the Justice Department in May, which included fraud, money laundering, theft of public funds and false statements. Although Santos has repeatedly rebuked the calls for his resignation from the chamber, he stepped down from his committee assignments earlier this year. Still, Santos announced he would seek reelection to represent New York's 3rd Congressional District in 2024. And although McCarthy had pledged to remove Santos should the committee determine he had broken a law, after his ouster as speaker, the future is uncertain.
Persons: George Santos, Santos, , , “ Santos, he’s, Kevin McCarthy, McCarthy Organizations: Republican, Justice Department, Eastern, of, New York Republican, New, Congressional District Locations: of New York
Federal prosecutors say the New York Republican stole donor credit card information to pay his own campaign. AdvertisementAdvertisementRep. George Santos on Tuesday was hit with 23 new charges of conspiracy, wire and credit card fraud, falsification of records, and aggravated identity theft. In the superseding indictment, officials for the US Attorney's Office Eastern District of New York said the New York Republican stole donor credit card information to pay his own campaign. Officials in the indictment detailed two different schemes they allege Santos used to present his campaign as more financially viable than it actually was then later steal credit card information from donors to pay for his campaign. "On one occasion, Santos charged $12,000 to the Contributor's credit card, ultimately transferring the vast majority of that money into his personal bank account."
Persons: George Santos, Santos, , Breon Peace, Nancy Marks Organizations: New York Republican, Service, US Attorney's, of, United Locations: Eastern, of New York
Rep. George Santos, R-N.Y., arrives to the U.S. Capitol for a procedural vote on a motion to vacate against Speaker of the House Kevin McCarthy, R-Calif., on Tuesday, October 3, 2023. Federal prosecutors hit Rep. George Santos, R-N.Y., with 23 additional charges Tuesday, including allegations of identity theft and that he charged a supporter's credit card in excess of their contribution and then transferred the money to his personal bank account. He's also alleged to have been involved in a credit card scheme where the campaign would charge contributors' credit cards repeatedly and above FEC individual contribution limits. On another occasion, he allegedly "charged $12,000 to the Contributor's credit card, ultimately transferring the vast majority of that money into his personal bank account." Marks pleaded guilty last week to some of the same conduct involving false FEC filings that Santos was charged with Tuesday.
Persons: George Santos, Kevin McCarthy, Prosecutors, Santos, Nancy Marks, Marks, He's, texted Santos Organizations: U.S, Capitol, Federal, Commission, United, Eastern, of, Republican Party, Santos, Prosecutors, United States House, Representatives, NBC News Locations: United States, of New York
CNN —Federal prosecutors on Tuesday accused Rep. George Santos of stealing donors’ identities and running up thousands of dollars in fraudulent charges on their credit cards. This fresh round of charges, called a superseding indictment, effectively replaces the earlier case against Santos. In May, Santos, 35, pleaded not guilty to 13 federal charges. Pressed Tuesday on whether he would resign, Santos said: “No, I will not.”“I did not have access to my phone. I have no clue what you guys are talking about,” Santos told CNN’s Manu Raju when asked about the indictment.
Persons: George Santos, Santos, Santos ’, Nancy Marks, , ” Marks, Marks, ginning, ” “, ” Santos, CNN’s Manu Raju, Organizations: CNN, Federal, New York Republican, Republicans, Santos, of New, Representatives, House, New, Congressional Locations: United States, of New York, Long Island, Queens
The former campaign treasurer to Rep. George Santos of New York will plead guilty Thursday in connection with a criminal case against the Republican congressman, according to a spokesman for prosecutors. That filing said prosecutors will file a so-called information against Marks; such charging documents are routinely used when a defendant has agreed to plead guilty. Santos was charged in May with a 13-count federal indictment in the same court accusing him of campaign finance fraud, money laundering and other crimes. A spokesman for U.S. Attorney's Office for the Eastern District of New York declined to say what Marks will plead guilty to. In August, Samuel Miele, a former Santos fundraiser, was charged in the same federal court with impersonating a top aide to former House Speaker Kevin McCarthy while seeking campaign donations.
Persons: George Santos, Nancy Marks, Marks, Santos, Samuel Miele, Kevin McCarthy Organizations: Republican, Court, U.S, Attorney's, Eastern, of Locations: George Santos of New York, Central Islip , New York, Long, of New York, Nassau County, Queens
A lawsuit said McDonald's and Wendy's overstated the size of their patties in adverts for nearly every product. A judge just dismissed the lawsuit, saying that the plaintiff didn't prove that the ads would likely mislead a reasonable customer. AdvertisementAdvertisementA judge dismissed a lawsuit that said McDonald's and Wendy's burgers looked much bigger in ads. Wendy's adverts also exaggerated the amount of the toppings its burgers featured, the lawsuit said, without giving specifics. Chimienti said that he'd bought a Bourbon Bacon Cheeseburger and a Big Bacon Cheddar Cheeseburger from Wendy's and a Big Mac and a cheeseburger from McDonald's.
Persons: McDonald's, Wendy's, , Justin Chimienti, Wendy's Bourbon Bacon Cheeseburger, Chimienti, he'd, Bacon Cheeseburger, Bourbon Bacon Cheeseburger, Hector Gonzalez, Gonzalez Organizations: Service, of, YouTube Locations: Eastern, of New York, Wendy's, McDonald's
REUTERS/Joshua Roberts/File Photo Acquire Licensing RightsNEW YORK, Oct 2 (Reuters) - McDonald's (MCD.N) and Wendy's (WEN.O) have defeated a lawsuit accusing them of deceiving hungry diners by exaggerating the size of their burgers. Chimienti, a resident of Long Island's Suffolk County, said McDonald's and Wendy's ads depicted undercooked beef patties because meat shrinks 25% when cooked. The complaint quoted a food stylist who said she had worked for McDonald's and Wendy's, and preferred undercooked patties because fully-cooked burgers looked "less appetizing." He said McDonald's and Wendy's were not legally obligated to sell burgers by advertising them, and that their websites provided "prominent, objective information" about the burgers' weight and caloric content. McDonald's, Wendy's and their lawyers did not immediately respond to similar requests.
Persons: Joshua Roberts, Hector Gonzalez, Justin Chimienti, Wendy's Bourbon Bacon Cheeseburger, McDonald's, Chimienti, Wendy's, Gonzalez, Burger King, Taco Bell, Jonathan Stempel, David Gregorio 私 たち Organizations: McDonald's Corp, REUTERS, District, Mac, McDonald's, Burger, Restaurant Brands, Yum Brands, Wendy's, Court, Eastern District of Locations: Arlington , Virginia, U.S, Brooklyn, Long Island's Suffolk County, Miami, Eastern District, Eastern District of New York, New York
MEXICO CITY (AP) — The U.S. Treasury has announced sanctions against nine affiliates of Mexico’s Sinaloa drug trafficking cartel, as well as the current leader of Colombia’s powerful Clan del Golfo criminal enterprise. The Office of Foreign Assets Control designated all 10 for their roles in drug trafficking, meaning any of their assets in the United States will be blocked and U.S. citizens are generally prohibited from dealing with any of their assets. The nine affiliates of the Sinaloa cartel follow a U.S. indictment unsealed in April that targeted a branch of the Sinaloa cartel run by the sons of former leader Joaquín “El Chapo” Guzmán. Mexico extradited one of those sons, Ovidio Guzmán López, earlier this month to the United States. “Today’s actions reinforce the United States’ whole of government approach to saving lives by disrupting illicit drug supply chains,” U.S. Secretary of State Antony Blinken said in a statement.
Persons: del, Joaquín “, Ovidio Guzmán López, Antony Blinken, de Jesus Avila Villadiego, “ Chiquito, , U.S . Avila, Avila Organizations: MEXICO CITY, U.S . Treasury, Foreign Assets Control, Colombian, de, U.S ., Southern District of, of Locations: MEXICO, U.S, Sinaloa, United States, Guzmán, Mexico, Colombia, Bogota, Avila, Southern District, Southern District of Florida, Eastern, of New York
REUTERS/Scott Morgan/File Photo Acquire Licensing RightsNEW YORK, Aug 29 (Reuters) - Geico must face a proposed nationwide class action accusing the car insurer of violating customers' privacy by disclosing hundreds of thousands of driver's license numbers to identity thieves looking to collect fraudulent unemployment benefits. Geico, a unit of billionaire Warren Buffett's Berkshire Hathaway (BRKa.N), was accused of auto-populating driver's license numbers into its online system when users entered "basic" information such as names, addresses and birth dates in order to obtain insurance quotations. Matsumoto accepted a July 21 recommendation by U.S. Magistrate Judge Sanket Bulsara to let the lawsuit proceed. She also accepted his recommendation to dismiss claims that Geico violated a New York state consumer protection law and committed negligence "per se." The case is In re Geico Customer Data Breach Litigation, U.S. District Court, Eastern District of New York, No.
Persons: Scott Morgan, District Judge Kiyo Matsumoto, Warren Buffett's Berkshire Hathaway, Matsumoto, Kristen Wenger, Judge Sanket Bulsara, Geico, Jonathan Stempel, Bill Berkrot Organizations: Berkshire Hathaway, REUTERS, District, U.S, Court, Eastern District of, Thomson Locations: Omaha , Nebraska, U.S, Brooklyn, New York, Eastern District, Eastern District of New York
Disgraced musician R. Kelly and Universal Music Group must pay more than $500,000 in music royalties to his sexual abuse victims, a New York judge ruled. As part of his sentencing in the case, Kelly, Universal and Sony Music Entertainment were ordered to pay his half-million dollar debut. Universal Music Group is holding at least $567,444.19. Universal Music Group did not immediately respond to a request for comment on Friday. Kelly, 56, was found guilty in September 2021 on nine counts of sex trafficking and racketeering in a high-profile sex trafficking case.
Persons: Kelly, Ann Donnelly, Robert Sylvester Kelly, — Daniel Arkin, Adam Reiss Organizations: Universal Music Group, U.S, Eastern, of New, Universal, New, Sony Music Entertainment, Prosecutors, Sony, Universal Music, Attorney's, Hennepin County Attorney's Locations: Leighton, Chicago, New York, of New York, Brooklyn, U.S, York, Minnesota, Hennepin County
A campaign aide to Representative George Santos who impersonated Speaker Kevin McCarthy’s former chief of staff was charged with wire fraud and identity theft in a federal indictment unsealed on Wednesday. Federal prosecutors said the aide, Samuel Miele, was behind “fraudulent fund-raising” emails and phone calls that were sent and made to more than a dozen potential campaign contributors. In his solicitations, Mr. Miele, 27, claimed to be a “high-ranking aide to a member of the House with leadership responsibilities,” the indictment said. When Mr. Miele successfully obtained campaign contributions, he received a 15 percent commission. He was arraigned on Wednesday morning in federal court in Brooklyn and pleaded not guilty, according to John Marzulli, a spokesman for the U.S. attorney’s office in the Eastern District of New York.
Persons: George Santos, Kevin McCarthy’s, Samuel Miele, Miele, John Marzulli Organizations: U.S, of Locations: Brooklyn, Eastern, of New York
U.S. Rep. George Santos leaves the U.S. District Court for the Eastern District of New York in Central Islip, New York, May 10, 2023. A man who was a paid campaign fundraiser for Rep. George Santos was indicted in New York on federal criminal charges related to his allegedly impersonating a top aide to House Speaker Kevin McCarthy as he solicited donations for Santos. Santos, who was first elected in 2022, represents a House district that covers parts of Queens in New York City, and Nassau County in Long Island. McCarthy, a California Republican, has defended Santos' right to continue serving in the House even as he fights his own criminal charges. "According to a federal indictment, George Santos paid someone to impersonate Kevin McCarthy's chief of staff to raise money, yet McCarthy continues to protect Santos," Goldman wrote.
Persons: George Santos, Kevin McCarthy, Santos, Samuel Miele, Miele, Dan Meyer, McCarthy, Kevin Marino, John Marzulli, Dan Goldman, Kevin McCarthy's, Goldman, CNBC's Kevin Breuninger, Brian Schwartz Organizations: Rep, Eastern, of, Santos, New York Republican, CNBC, U.S, California Republican, Democrat, Court Locations: U.S, of New York, Central Islip , New York, New York, Miele, Queens, New York City, Nassau County, Long, California, Manhattan, Brooklyn, Eastern
The Swiss-banking giant UBS agreed on Monday to pay $1.4 billion to settle U.S. claims that it misrepresented bonds backed by mortgages sold in the years leading up to the 2008 financial crisis, a sign that the legacy of the turmoil that engulfed the global financial system continues to haunt Wall Street. The settlement with UBS is the last action brought by a Justice Department task force that was set up in 2012, during the Obama administration. It investigated the role of big banks and other financial firms in selling flawed and predatory mortgage products that contributed to the collapse of the U.S. housing market, federal prosecutors in Brooklyn said in a news release. “The substantial civil penalty in this case serves as a warning to other players in the financial markets who seek to unlawfully profit through fraud that we will hold them accountable no matter how long it takes,” said Breon Peace, U.S. attorney for the Eastern District of New York. UBS said in a statement on its website that it had reached the settlement with federal prosecutors to resolve “a legacy matter,” adding that the money had already been accounted for in previous financial statements.
Persons: Obama, Organizations: UBS, Justice Department, Eastern, of Locations: Swiss, Brooklyn, U.S, of New York
New York CNN —The Justice Department announced on Monday that UBS has agreed to pay $1.4 billion in penalties for allegedly defrauding investors by selling mortgage-backed securities that blew up during the Great Recession. The settlement resolves the final case brought by the DOJ to investigate the role of Wall Street firms in the 2008 financial crisis. In a statement, UBS described the agreement as a settlement of a “legacy matter” and said it has been fully provisioned in prior periods. Other Wall Street firms including Barclays, Deutsche Bank and Goldman Sachs were previously hit by even larger fines to reach toxic mortgage settlements with the US government. All told, prosecutors say they leveled more than $36 billion in fines for conduct that fueled the 2008 financial crisis, including from banks and ratings firms.
Persons: , Ryan Buchanan, Goldman Sachs Organizations: New, New York CNN, The Justice, UBS, DOJ, Wall Street, Eastern, of, Northern, Northern District of, Barclays, Deutsche Bank Locations: New York, of New York, Wall, Northern District, Northern District of Georgia
(Reuters) - Nio Inc investors can proceed as a class in a lawsuit claiming the Chinese electric vehicle maker lied about building its own factory in Shanghai during its 2018 initial public offering, a U.S. judge has ruled. Chinese electric vehicle start-up Nio Inc. company logo is on display on its initial public offering (IPO) day at the NYSE in New York, U.S., September 12, 2018. Securities class actions rarely go to trial; those that are not dismissed typically result in settlements. When Nio disclosed the plant would not be built in March 2019, its ADS price dropped 30%, from around $10 to $7 per share, the investors said. Nio ADS were trading at around $13.50 per share on Wednesday, down about 3.9% from Tuesday’s closing price.The case is In re: NIO, Inc., Securities Litigation, U.S. District Court, Eastern District of New York, No.
Persons: Brendan McDermid, Nicholas Garaufis, Morgan Stanley, Goldman Sachs, Nio Organizations: Reuters, Nio Inc, NYSE, REUTERS, underwriters, U.S, Securities, Inc, Securities Litigation, Court, Eastern District of Locations: Shanghai, U.S, New York, Nio, Eastern District, Eastern District of New York
REUTERS/Andrew Kelly/File Photo License this content on Reuters ConnectNEW YORK, Aug 1 (Reuters) - LensCrafters agreed to pay $39 million to settle a lawsuit by prescription eyeglass customers who accused the eyewear chain of misleading them about how well its Accufit technology could measure their eyes. Customers said the claims were false because LensCrafters' manufacturing processes did not support its claims, and that an update would not be clinically significant. They claimed to pay more for their glasses than if LensCrafters had not overpromised and underdelivered. The settlement covers all U.S. customers of LensCrafters who since Sept. 5, 2013, bought prescription glasses after being fitted with Accufit. LensCrafters said it operates 955 stores in 49 U.S. states, Washington, D.C., and Puerto Rico, with no stores in Wyoming.
Persons: Andrew Kelly, LensCrafters, Accufit, Allegra et, Jonathan Stempel, Jonathan Oatis Organizations: EssilorLuxottica SA, REUTERS, Reuters, Customers, D.C, Retail, Court, Eastern District of, Thomson Locations: Manhattan , New York City, U.S, Brooklyn, New York , California, Florida, Washington, Puerto Rico, Wyoming, Paris, Charenton, Pont, America, Eastern District, Eastern District of New York, New York
The SEC alleged he touted the investments as a "pathway to grandiose wealth." But the SEC alleged that the 38% annual return that Schueler touted was nothing more than cover for an elaborate scheme. Schueler faces three charges of securities fraud in civil court. Schueler misappropriated at least $12 million of investor funds, the SEC alleged, to purchase a 555-carat black diamond, high-end vehicles, and luxury watches. A $550,000 Rolex Daytona, an $800,000 Rolex GMT Master II and another unspecified $1.38 million Rolex watch were among his watch purchases, the SEC said.
Persons: Gary Gensler, Richard Schueler, Richard Heart, Schueler, pare Organizations: SEC, U.S . Treasury, The Securities, Exchange Commission, Rolex, of Locations: Washington ,, United States, Finland, Eastern, of New York
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