Posts tagged ‘Glen Galemmo investment funds’

Glen Galemmo Pleads Guilty to Ponzi Scheme

According to WPCO Cincinnati, money manager and former broker for Landmark Investment Group, Glen Galemmo, entered into a plea agreement on Jan 15, 2014 admitting that he took millions from investors. Mr. Galemmo was accused of operating a massive ponzi scheme, where he deliberately led as many as 200 clients to believe he was investing their money in a hedge fund, but never invested their money in anything (read more, here).

According to the plea agreement the amount he cheated from his clients was somewhere between $7 million and $20 million. However, a group lawsuit against Mr. Galemmo is claiming damages of $300 million. Mr. Galemmo pled guilty to wire fraud and money laundering, and admitted to collecting approximately $116 million from clients.

Mr. Galemmo was ordered to turn over his assets, which included two houses, five vehicles, his office building, and approximate $1.7 million from his personal accounts. It is unclear if Mr. Galemmo will be able repay his victims. Unfortunately, for most victims involved in a ponzi-scheme the money has been spent or is otherwise long gone before the fraud is detected.

The White Law Group is investigating the liability that Mr. Galemmo’s employer may have for his scam. When a registered broker conducts business outside of the firm where they work the activity may be considered “selling away.” Although Mr. Galemmo worked as an independent money manager he was also registered with FINRA registered broker dealers. If a registered broker “sells away” from his firm, the brokerage firm may still be liable for negligent supervision of their broker and may be responsible for investment losses in a FINRA dispute resolution claim.

According to the Financial Industry Regulatory Authority (FINRA), Mr. Galemmo was a registered broker with Westmoore Trading Company from 05/2001 -03/2002, Essex & York from 03/2002 – 11/2003, Lightspeed Professional Trading from 04/2004 – 12/ 2007 and Landmark Investment Group from 12/2009 – 09/2012.

If you invested with Mr. Galemmo while he worked with a FINRA registered firm and would like to discuss your litigation options, please call the securities attorney of The White Law Group at (312)238-9650 for a free consultation.

The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection/compliance law firm with offices in Chicago, Illinois and Boca Raton, Florida.

To learn more about The White Law Group, visit www.WhiteSecuritesLaw.com.

Investors Sue Former Cincinnati Broker for Alleged Fraud

According to The Enquirer, former broker and Cincinnati investment fund manager, Glen Galemmo, is being sued by investors for allegedly operating a Ponzi scheme in the guise of a hedge fund. Investors claim to have lost tens of millions of dollars as a result of their investments with Galemmo.

The lawsuit was filed after investors received an email stating that one of Galemmo’s funds, Queen City Investments, LLC., “will no longer be in operation,” The email went on to say that Galemmo would not be available to answer questions, and that under the advisement of his attorney, he should not have “any interaction” with his clients. It appears that Galemmo operated multiple investments groups including Galemmo Investments, Essex & York, QFC, QC Sweep, Sentinel Strategy, Glen Rock, Cincinnati Royals and Midwest Hoops.

According to The Enquirer, Queen City Investments was closed following a raid by federal agents. All incoming calls to the business are being redirected to the IRS who are conducting a separate investigation. This is not a good sign for investor looking to recover their investment losses. In addition, court records indicate that Galemmo had trouble paying Ohio income taxes in recent years. As such, The White Law Group is investigating other avenues of recovery.

When a FINRA affiliated broker conducts business outside of the firm with whom he is registered the activity may be considered “selling away.” Although Galemmo operated his own investment groups he was also registered with FINRA registered broker-dealers. If a registered broker “sells away” from his firm, the brokerage firm may still be liable for negligent supervision of their broker representative and may be responsible for investment losses in a FINRA dispute resolution claim.

According to Galemmo’s FINRA Broker Report, he worked with RM Stark & Co from 03/1999-05/1999, Westmoore Trading Company from 05/2001-03/2002, Essex & York from 03/2002-11/2003, Lightspeed Professional Trading from 04/2004-12/2007, and Landmark Investment Group from 12/2009-09/2012.

To the extent that Galemmo solicited investments in his alleged scheme while affiliated with a FINRA registered broker dealer at the time of the solicitation, that brokerage firm may be liable for the losses incurred.

If you suffered losses as a result of your dealings with Glen Galemmo and would like to discuss your litigation options, please call the securities attorneys of The White Law Group at (312)238-9650 for a free consultation.

The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Boca Raton, Florida.

For more information on The White Law Group, please visit the firm’s website at http://www.WhiteSecuritiesLaw.com.