Press Release Portfolio Manager Charged With Diverting Nearly $2 Million to Personal Account FOR IMMEDIATE RELEASE 2017-82 Washington D.C., April 24, 2017— The Securities and Exchange Commission today announced fraud charges against a Massachusetts-based portfolio manager accused of diverting at least $1.95 million to his personal brokerage account from a fund over which he had trading authority. The SEC’s complaint alleges that Kevin J. Amell carried out a fraudulent matched-trades scheme in which he prearranged the purchase or sale of call options between his own account and the brokerage accounts of the fund at prices that were disadvantageous to the fund and advantageous to him. In one series of trades involving Amazon securities, for example, Amell allegedly generated a $23,000 profit for himself in less than 23 minutes at the fund’s expense. “As alleged in our complaint, Amell abused his trading authority at least 265 times by matching trades between the fund and his personal account at prices that he intentionally and fraudulently skewed to benefit himself,” said Joseph G. Sansone, Co-Chief of the SEC Enforcement Division’s Market Abuse Unit. In a parallel action, the U.S. Attorney’s Office for the District of Massachusetts today filed criminal charges against Amell. The SEC’s complaint charges Amell with violating Sections 17(a)(1) and (3) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934 and Rules 10b-5(a) and (c), and Sections 17(a)(1), 17(a)(2) and 17(j) of the Investment Company Act of 1940 and Rules 17j-1(b)(1), (3) and (4). The SEC is seeking disgorgement of Amell’s ill-gotten gains plus interest and penalties as well as injunctions. The SEC’s investigation, which is continuing, is being conducted by Melanie A. MacLean, John D. Marino, and Simona Suh of the Market Abuse Unit and Elzbieta Wraga of the New York Regional Office. The case has been supervised by Mr. Sansone. The litigation will be led by Ms. MacLean, Ms. Suh, and Martin F. Healey of the Boston Regional Office. The SEC appreciates the assistance of the U.S. Attorney’s Office for the District of Massachusetts, the Federal Bureau of Investigation’s Boston Field Office, and the Financial Industry Regulatory Authority.
"...as well as injunctions." Holy Cow! He STOLE thousands and thousands of dollars! He's the thief with the pen (computer mouse), who walks with a slap, versus the schmuck who gets a lifetime for filling a paper bag from the bank teller. "Disgorgement of [his] ill-gotten gains." {head shaking....}
You missed that part : "In a parallel action, the U.S. Attorney’s Office for the District of Massachusetts today filed criminal charges against Amell." Actually white collar crime prosecution in the US is very harsh compared to most other places in the world, especially the western world.
Of course a lot of money and connections helps in the US. Yet Madoff was jailed for 150years and his family largely destroyed, where i'm from he would have risked 5 years. There are numerous similar cases, and one need very deep pockets to defend against US criminal accusations, or risk going in for absurd lengths. Read a funny report recently that in Canada when investigated by financial authorities, it is very serious, one could lose their golf club membership if convicted - and that seriously a similar issue that would put one in jail 20 years in the US would get them a slap on the wrist in Canada. it is similar in continental european countries, although lawmakers, and public opinion, seem to be getting harsher since 2008.
Andrew Wiederhorn was convicted of a financial misconduct and his Golf Club membership was canceled. He currently owns Fatburger and was on "Undercoverboss". https://en.wikipedia.org/wiki/Andrew_Wiederhorn
So he is facing criminal charges, and in all fairness if you rob a bank with a paper bag without any weapons or threats of weapons you'll most probably end up with less of a sentence than this guy will get. Stealing money is bad, robbing a bank with lethal weapons is the stealing part plus the threatening to kill people part, so you'd expect the punishment to be a bit harsher, no?