Stephen Colangelo, founder of four startup companies namely Under the Radar SEO, The Brickell Fund, Start A Hedge Fund and the Hedge Community was recently alleged by the U.S Security and Exchange Commission for having misled investors. Colangelo was found to have spent at least a million received from investors, for various other activities, which include family, travel and even drugs, gambling and cigars.
Having misled his investors with false statements, representations, fraudulent performance statements and numerous other business documents Colangelo is now charged with having violated federal anti fraud laws.
Having deceived investors with claims concerning alleged profits and investments strategy, he has misappropriated large amounts of money from investors in supporting other unrelated business ventures and his personal benefits.
He has in fact "boasted a phony professional and educational background and hid his past criminal activities from potential investors," a stateman in the U.S Security and Exchange Commission declared, as reported by investors.com
A criminal charge has thus been filed by the district attorney of Southern New York against Colangelo. He was arrested at his home and will soon be presented before Judge Debra, the U.S magistrate in the Manhattan Federal Court. Colangelo is also charged with cases of wire fraud and security fraud, both of which call for a term of 20 years.
"Alleged schemes like Colangelo's are all too familiar and we will continue to prosecute those who defrauded their investors," Preet Bharara, a U.S attorney complains.
“As alleged, Stephen Colangelo held himself out to be an investment manager who lured in clients to funds that he used as vehicles for stealing millions of dollars of investor money. Alleged schemes like Colangelo’s are all too familiar, and we will continue to prosecute those who defraud their investors.” he says, as reported by fbi.gov.com.
“Colangelo was arrested by FBI agents today for allegedly swindling investors not once, but in two different fraudulent schemes. He reaped an estimated 2.7 million dollars, which he used for personal expenses. These are investment schemes the FBI has seen all too often. We remain committed to investigating and apprehending those who seek to deceive investors”, says Mary E Galligan, acting assistant director in charge of the New York FBI says.