Arrest in most lucrative insider trading scheme - DC Breaking Local News Weather Sports FOX 5 WTTG

Feds: arrest in most lucrative insider trading scheme

Posted: Updated:

NEW YORK (AP) - A New York investment manager has been charged with defrauding investors out of more than $2.7 million.

Manhattan federal prosecutors say Stephen Colangelo Jr., misled investors by making false statements, including issuing fraudulent performance statements and other business documents.

Colangelo was arrested Monday at his home in Congers, N.Y.

Prosecutors say he was involved in two separate schemes between 2009 and 2011.

One allegedly involved a hedge fund Colangelo controlled called the Brickell Fund, LLC. The second allegedly involved three companies he created and controlled. They were Hedge Community, Start A Hedge Fund and Under the Radar SEO.

Colangelo was charged with two counts of securities fraud and two counts of wire fraud. Each carries a maximum term of 20 years in prison.

Information about his lawyer wasn't immediately available.

Copyright 2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

  • Your Money

  • Wednesday, May 22 2013 7:44 PM EDT2013-05-22 23:44:14 GMT
    New Jersey officials have seized inventory and demanded records from 29 bars and restaurants, nearly half of them TGI Fridays, that they say sold low-quality liquor to patrons who thought they were buying premium brands.
    New Jersey officials have seized inventory and demanded records from 29 bars and restaurants, nearly half of them TGI Fridays, that they say sold low-quality liquor to patrons who thought they were buying premium brands.
  • HommeMystere

    Wednesday, May 22 2013 2:35 PM EDT2013-05-22 18:35:57 GMT
    When it comes to breaking through to the other side, forget Victoria's Secret. Another company, Australia-based HommeMystere, has already done it with lingerie for men.
    When it comes to breaking through to the other side, forget Victoria's Secret. Another company, Australia-based HommeMystere, has already done it with lingerie for men.
  • Wednesday, May 22 2013 12:48 PM EDT2013-05-22 16:48:36 GMT
    High-tech businesses from other states and abroad that move to college campuses or nearby in New York would operate completely tax-free for 10 years.
    High-tech businesses from other states and abroad that move to college campuses or nearby in New York would operate completely tax-free for 10 years.
Powered by WorldNow

WTTG FOX 5 & myfoxdc
5151 Wisconsin Ave. NW
Washington, DC 20016
Main Number: (202) 244-5151
Newsroom: (202) 895-3000
fox5tips@wttg.com

Didn't find what you were looking for?
All content © Copyright 2000 - 2013 Fox Television Stations, Inc. and Worldnow. All Rights Reserved.
Privacy Policy | Terms of Service | Ad Choices