SEC Charges Investment Advisor with Improperly Raising Funds for Ponzi Scheme

The U.S. Securities and Exchange Commission (“SEC”) continued its onslaught against Scott Rothstein associates earlier this month when it filed suit in federal court against Barry R. Bekkedam (“Bekkedam”), Chairman and Chief Executive Officer of investment advisory firm Ballamor Capital Management (“Ballamor”).  The SEC suit follows a growing number of SEC actions against individuals and corporations accused of providing investor funds and assistance to convicted South Florida Ponzi-schemer Scott Rothstein.

The SEC alleges that Bekkedam, through Ballamor, solicited his clients and other prospective investors to invest $100 million into the Banyon Income Fund (“Banyon Fund’”), an enormous hedge fund that primarily financed Rothstein’s Ponzi-scheme operations.  The Banyon Fund was created by Bekkedam and Rothstein investor George Levin to solicit additional funds for Rothstein and, the SEC alleges, bolster Ballamor’s business and protect Levin’s multi-million dollar investments with Rothstein.

In seeking disgorgement and civil penalties against Bekkedam, the SEC details allegations of Bekkedam’s material misstatements and omissions to his customers in connection with the Banyon Fund, as well as misrepresentations about his dealings with George Levin, which the SEC alleges were quid pro quo for Bekkedam’s securing investments in the Banyon Fund.  The SEC also alleges numerous securities law violations.

If you have questions about your legal rights, or have been the victim of investment fraud, please contact Scott Silver of the Silver Law Group for a free consultation at ssilver@silverlaw.com or Toll Free at (800) 975-4345.