Adviser (and Bernie Madoff's neighbor) charged with $25M fraud

Donald Anthony Young, an investment adviser who headed Acorn Capital Management LLC, was charged with running a $25 million Ponzi scheme, prosecutors said.
APR 30, 2010
By  Bloomberg
Donald Anthony Young, an investment adviser who headed Acorn Capital Management LLC, was charged with running a $25 million Ponzi scheme, prosecutors said. Young, 38, of Palm Beach, Florida, was indicted today on one count of mail fraud and one of money laundering, U.S. Attorney Michael Levy in Philadelphia said in a statement. “Ponzi schemes are usually a vehicle for an unscrupulous person to live high off of someone else’s wealth,” Levy said in the statement. “This defendant helped himself to others’ fortunes, living a life of luxury, with little or no regard for the damage to our financial markets.” Young operated an investment advisory business in Kennett Square, Pennsylvania, under names including Acorn Capital Management II LP and Acorn Management LLC, according to the statement. He allegedly solicited more than $95 million from investors and diverted more than $25 million to cover the purchase of homes in Pennsylvania, and Maine, according to the indictment, as well as Florida -- where he was neighbors with convicted Ponzi schemer Bernie Madoff, according to the Palm Beach Daily News. When clients requested money, Young allegedly paid them with funds from other investors, prosecutors said. He also lied to the U.S. Securities and Exchange Commission and refused to provide the agency with documents in an investigation last year, prosecutors said. James McHugh, an attorney for Young with the Federal Community Defender Office in Philadelphia, didn’t immediately return a phone call seeking comment. If convicted, Young faces a maximum of 30 years in prison.

Latest News

Why financial honesty is key to harmonious relationships
Why financial honesty is key to harmonious relationships

Nearly half of single Americans think their net worth shapes their fate in dating, but the biggest financial green flags tell a different story.

Osaic hit with class action over cash sweep payments
Osaic hit with class action over cash sweep payments

The hybrid RIA is the latest firm to face allegations that it enriched itself at customers' expense by paying unfairly low interest rates in its cash sweep programs.

LPL's Rich Steinmeier turns the page on CEO firing with eye on firm's growth
LPL's Rich Steinmeier turns the page on CEO firing with eye on firm's growth

Installed after Dan Arnold's abrupt termination, the new leader at LPL Financial is highlighting the firm's refocusing on the individual advisor.

LPL, Raymond James boost advisor ranks anew
LPL, Raymond James boost advisor ranks anew

LPL Financial welcomes a $345 million investment and planning team from Ameriprise as RayJay's employee advisor arm adds a seasoned Well Fargo breakaway.

CFP Board CEO Keller retiring
CFP Board CEO Keller retiring

The CFP Board will be searching for a replacement for CEO Kevin Keller who will be stepping down in April 2026.

SPONSORED Taylor Matthews on what's behind Farther's rapid growth

From 'no clients' to reshaping wealth management, Farther blends tech and trust to deliver family-office experience at scale.

SPONSORED Why wealth advisors should care about the future of federal tax policy

Blue Vault features expert strategies to harness for maximum client advantage.