Investors are always looking for a good return and someone they can trust with their money. All too often that stellar return is the result of fraud and that person who was trusted with millions was lining his own pockets. The latest chapter in Wall Street’s long history of Ponzi schemes appears to be Platinum Partners. This New York hedge fund stood out for its returns that rivaled some of the biggest names in the industry, according to the New York Times.
Mark Nordlicht, a founder and the chief investment officer of Platinum, and six others face criminal charges related to an alleged $1 billion fraud. Prosecutors allege the hedge fund operated as a Ponzi scheme. If so it’s one of the biggest fraud cases since Bernard L. Madoff’s investment firm imploded in 2008.
The charges include securities fraud and investment adviser fraud, according to an unsealed indictment filed in Federal District Court in Brooklyn. A related civil lawsuit has been filed by the Securities and Exchange Commission (SEC).