SEC charges eight in $102 million Ponzi scheme

One defendant allegedly used some of the stolen money to commission a song about himself and had it played at a Las Vegas nightclub

Jun 19, 2018 @ 5:09 pm

By Greg Iacurci

The Securities and Exchange Commission brought charges against five men and three connected entities on Tuesday for allegedly perpetrating a $102 million Ponzi scheme that defrauded more than 600 investors.

The SEC claims two of the defendants — Perry Santillo and Christopher Parris — would "buy or take over books of business of retiring investment professionals from around the country."

Both Mr. Santillo and Mr. Parris are 38-year-old residents of Rochester, N.Y. and were formerly registered brokers.

They and the other three defendants — Paul Anthony LaRocco, 55; John Piccarreto, 34; and Thomas Brenner, 55 — would then persuade newly acquired clients to withdraw their money and "invest in issuers controlled by Santillo, Parris, or their associates," according to the SEC's civil lawsuit, filed in U.S. District Court for the Southern District of New York.

(More: Regulators gunning for brokers and advisers who sold $1.2 billion Ponzi)

The majority of the $102 million in the Ponzi scheme since 2011 was allegedly raised for three issuers — First Nationle Solution, Percipience Global Corp. and United RL Capital Services. The business operations for the three firms, which are also defendants in the suit, were allegedly "limited or non-existent."

None of the defendants or the three firms could immediatly be reached for comment.

Overall, the SEC claims the five individuals each stole millions from investors, which were either misappropriated or paid out to investors looking to redeem their money.

Mr. Santillo allegedly used at least $13.4 million of the investor funds to "fund a jet-setting lifestyle," including country-club expenses, housing in multiple states, credit-card payments and a party at a Las Vegas nightclub, for which he had a song commissioned about himself.

(More: SEC charges Woodbridge Group with running $1.2 billion Ponzi scheme)

That song's lyrics referred to him as "King Perry," who wore a "ten-thousand-dollar suit everywhere he rides" and would "pop the champagne in L.A., New York to Florida; buy another bottle just to spray it all over ya," according to the SEC's complaint.

0
Comments

What do you think?

View comments

Recommended for you

Featured video

Events

3 Questions to ask yourself when making your succession plan

Michael Futterman from Janus Henderson Investors has sage advice for advisers as they approach retirement.

Latest news & opinion

Genstar Capital buys majority stake in Cetera Financial Group

The private-equity firm has previously invested in such companies as Mercer Advisors and AssetMark.

Cetera Financial Group close to announcing its acquisition by private equity

Details of sale to one or more P-E firms could be announced as early as today.

10 best states for retirement

When it comes to places to retire, here are the 10 best states for enjoying your golden years.

Focus Financial raises goal for IPO to $600 million

Company's revised goal from $100 million could be a sign RIA valuations are rising.

CFA Institute adding crypto, blockchain to curriculum

Subjects will be added to its Level I and II coursework for the first time next year.

X

Hi! Glad you're here and we hope you like all the great work we do here at InvestmentNews. But what we do is expensive and is funded in part by our sponsors. So won't you show our sponsors a little love by whitelisting investmentnews.com? It'll help us continue to serve you.

Yes, show me how to whitelist investmentnews.com

Ad blocker detected. Please whitelist us or give premium a try.

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print