$2.7 Million Dollar Ponzi Scheme Results in Ramifications

$2.7 Million Dollar Ponzi Scheme Results in Ramifications

Two brothers have been charged by the Securities and Exchange Commission for operating a $2.7 million ponzi scheme, by targeting elderly investors. Daniel Rivera, a New York resident, promised investors they would profit in a Pennsylvania real-estate venture named Robbins Lane. He recommended investors sell their retirement assets, enabling them to invest in the venture, which had no operations.

To make the ponzi scheme more sophisticated, Rivera created a Robbins Lane website and a brochure advertising featuring an offer that gave “the senior investor a guaranteed monthly income.” In return, Rivera used the funds for his personal expenses. He purchased sporting event tickets, paid his daughter’s college tuition, and transferred some funds to a janitorial business in which his brother, Matthew Rivera, was a partner.

Ponzi Scheme Unravels

The Robbins Lane venture founded by the brothers to supposedly buy, develop, and sell real-estate, actually had no ability to provide income to seniors or feature an investment portfolio. “Instead of investing in real-estate, hundreds of thousands of dollars of investor funds were used to pay other investors,” said the SEC.

The brothers have remained neutral, neither admitting or denying the SEC charges. Daniel Rivera was ordered to pay $1.9 million in restitution, as well as $160k in civil penalties. Matthew Rivera was ordered to pay $20,000 in restitution and $100k for civil penalties. Also, Daniel Rivera controlled companies Daniel Rivera Inc and Rivera & Assoc., are held liable for approximately $591,000.

Starr Austen Fights Against Ponzi Schemes

Let Starr Austen help you from criminals such as the Rivera Brothers. We have lots of experience representing victims of ponzi schemes. Our team of investment fraud lawyers have experience in representing clients who have purchased unsuitable annuities and will fight for the protection of investors and handle cases involving unsuitability, securities arbitration misrepresentation, overconcentration, broker fraud, negligence and breach of trust.