SEC settles fraud charges against Ponzi-scheme participant

The Securities and Exchange Commission has reached a settlement with former Philadelphia-area investment adviser Barry R. Bekkedam, who was charged with inducing clients and others to invest $100 million in Ponzi scheme. Bekkedam previously was convicted in a related criminal case and sentenced to a prison term of 11 months followed by three years of supervised release and ordered to pay a $100,000 fine. In the settlement reached with the SEC, he will pay disgorgement of $150,000 plus prejudgment interest of $70,969. According to the SEC’s complaint from 2014, Bekkedam made material misrepresentations and omissions and failed to disclose conflicts of interest when soliciting his clients and others to invest in a fund that allegedly purchased lawsuit settlements. The activity took place from April 2009 through October 2009. [More: Remember Bernie Madoff? Big time financial fraud is back]