SEC charges brothers with $2.7 million Ponzi scheme targeting elderly

SEC charges brothers with $2.7 million Ponzi scheme targeting elderly
Daniel Rivera allegedly ran a $2.7M phony real-estate venture targeting about 30 investors over six years.
JUL 06, 2016
The Securities and Exchange Commission has charged two brothers with orchestrating a $2.7 million Ponzi scheme targeting unsophisticated elderly investors. Daniel Rivera, a New York resident with an office in New Jersey, told investors from 2008 to 2014 they would profit in a Pennsylvania real-estate venture called Robbins Lane, the SEC said Wednesday. He sometimes recommended they sell their retirement assets in order to invest in the venture, which had no operations, according the agency's complaint filed in a federal court in New Jersey. As part of his scheme, he created a Robbins Lane website, as well as a brochure advertising an opportunity that gave “the senior investor a guaranteed monthly income,” the SEC said. Mr. Rivera used the money for personal expenses, including sporting event tickets and his daughter's college tuition, while transferring some of the funds to a janitorial business in which his brother Matthew Rivera was a partner. Robbins Lane, founded by the brothers to purportedly buy, develop and sell real-estate, had no investment portfolio and no ability to provide any income at all to the seniors. "Instead of investing in real estate, hundreds of thousands of dollars of investor funds were used to pay other investors," the SEC said in its complaint. The brothers neither admitted nor denied the SEC's charges, according to the agency's statement. Daniel Rivera was ordered to pay more than $1.9 million plus a $160,000 civil penalty; his brother, a Pennsylvania resident, was ordered to repay about $20,000 and a $100,000 civil penalty; Daniel Rivera Inc. and Rivera & Associates, two companies controlled by Daniel Rivera, were held liable for about $591,000, the statement shows.

Latest News

NASAA moves to let state RIAs use client testimonials, aligning with SEC rule
NASAA moves to let state RIAs use client testimonials, aligning with SEC rule

A new proposal could end the ban on promoting client reviews in states like California and Connecticut, giving state-registered advisors a level playing field with their SEC-registered peers.

Could 401(k) plan participants gain from guided personalization?
Could 401(k) plan participants gain from guided personalization?

Morningstar research data show improved retirement trajectories for self-directors and allocators placed in managed accounts.

UBS sees a net loss of 111 financial advisors in the Americas during the second quarter
UBS sees a net loss of 111 financial advisors in the Americas during the second quarter

Some in the industry say that more UBS financial advisors this year will be heading for the exits.

JPMorgan reopens fight with fintechs, crypto over fees for customer data
JPMorgan reopens fight with fintechs, crypto over fees for customer data

The Wall Street giant has blasted data middlemen as digital freeloaders, but tech firms and consumer advocates are pushing back.

The average retiree is facing $173K in health care costs, Fidelity says
The average retiree is facing $173K in health care costs, Fidelity says

Research reveals a 4% year-on-year increase in expenses that one in five Americans, including one-quarter of Gen Xers, say they have not planned for.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.