The SEC and federal prosecutors have accused a Florida hedge fund adviser of lining his own pockets and chasing bad bets, bilking investors out of millions to fund his NASCAR lifestyle.
Andrew Franzone has been indicted on securities and wire fraud charges. Separately, the Commission has filed a lawsuit in the Southern District of New York against him and the funds he advised. He is charged with misleading investors in private placement memos and other public statements, misappropriating investor funds, custody violations and failing to disclose conflicts of interests.
Franzone’s is at least the fourth federal fraud indictment of a private fund executive since the year began. Three of those four indictments—including Franzone’s, on April 23—involved unregistered Reg D fund advisers. Reg D reform is a top priority of one of new SEC Chairman Gary Gensler’s closest advisers (RCW, March 22, 2021).
You can read about his case in a story that also mentions FF Fund Management, Christopher Ferrell, ATF & Gunslinger and Hope for the Warriors, by registering at Regulatory Compliance Watch, here.