Edge Trading, Mark Moskowitz Fined $1 Million for Ponzi Scheme
The New Jersey Bureau of Securities (the Bureau) ordered Edge Trading, LLC and its president Mark Moskowitz to pay a $1 million civil penalty for selling unregistered securities through a Ponzi scheme.
In the Final Order, the Bureau found that from March 2012 through April 2016, Moskowitz raised at least $800,000 from investors, promising that the money would be invested in limited partnerships that offered investors great benefits and returns. In reality, however, the funds were primarily used to fund Moskowitz’s personal expenses and to pay off other investors in a classic Ponzi scheme.
Moskowitz told investors their money was “tied up” in other accounts
The remaining funds were lost through highly speculative options trading. In order to keep his scheme hidden from investors, Moskowitz provided his investors fake account statements that falsely represented purported net gains when, in fact, there were only losses.
Then, in March 2015, when certain investors began requesting disbursements promised to them, Moskowitz became evasive and falsely claimed that their money was “tied up” in other accounts or unavailable due to administrative errors. Ultimately, Moskowitz’s scheme was revealed when he spent all of the investor’s funds on himself or lost it trading options.
If you have suffered significant financial losses in a fraudulent scheme perpetuated by a broker you thought you could trust, the attorneys of the Business Trial Group may be able to help. Back by the largest contingency-fee law firm in the country, our clients pay no upfront fees or retainers, and we only receive a fee if we successfully recover compensation on your behalf.
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