|Scott Rothstein: now serving a 50-year sentence|
An individual associated with the Banyon Group, which are hedge funds, has been charged with Conspiracy to commit Wire fraud, in connection with the Scott Rothstein Ponzi scheme. Frank Preve, who reportedly steered investors to Rothstein's phantom legal settlements, is accused of obtaining $20m in additional investments, after he know that Rothstein's had stopped paying out returns. He also allegedly made material misrepresentations regarding verification of the existence of the bogus settlements that he purportedly conducted, and attested to in a memorandum.
Preve was charged through a criminal Information, not a Grand Jury indictment, which is generally an indication that the defendant is cooperating with the US Attorney's office. The maximum possible penalty is five years in Federal Prison, and a $250,000 fine. He has a civil suit pending against him, filed by the Securities & Exchange Commission.