Monday, April 20, 2015


George Levin (l), with Scott Rothstein (c).

Having obtained a summary judgment on some of the counts, and a jury verdict upon the rest of the civil charges pending against hedge fund owner George Levin, the Securities & Exchange Commission has now moved for entry of a final judgment, in an amount totaling over $181.4m, against the defendant. Levin was also barred from participating in any future securities transactions. The promissory notes he was selling, secured by the bogus court settlements Rothstein sold to his hedge fund, were not registered with the SEC, and Levin was also guilty of securities fraud.

The details:

(1) Disgorgement of profits, in the amount of $57m, together with prejudgment interest of $11.2m,  plus a Civil Penalty of $5.7m, for violations of §5 of the Securities Act.

(2)  Disgorgement of $49m, together with interest in the amount of $9.5m, plus a Civil Penalty of $49m, for violations of §17(a) of the Securities Act, and §10(b), and Rule 10b-5 of the Exchange Act.

Levin's hedge fund placed all its investors' money with Rothstein's purportedly secured investments in non-existent whistle blower, employee discrimination, and sexual harassment settlements; he certified to his investors that there were funds on deposit, when he had not seen documentary proof that they existed.


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