Securities Violator Patrick Kiley Sentenced to 20 Years in Prison
On July 15, 2013, Patrick Kiley was sentenced to 20 years in prison and ordered to pay $155 million in restitution in connection with his conviction on 15 criminal counts including mail and wire fraud, conspiracy to commit mail and wire fraud, and money laundering. The conviction arose from his role in a $194 million foreign currency trading scheme that defrauded approximately 1,000 investors.
On November 23, 2009, the SEC filed an injunctive action againt Kiley charging that from at least July 2006 through at least July 2009, Kiley and co-defendant Trevor G. Cook of Minneapolis, Minnesota, raised at least $190 million from 1,000 investors through the unregistered offer and sale of investments in a purported foreign currency trading venture.
According to the SEC Action, Cook and Kiley pooled investors’ funds in bank and trading accounts in the names of entities they controlled. The SEC Action alleges that the scheme resulted in millions of dollars in investor losses, and that the defendants used approximately one half of the investor funds to make Ponzi-like payments to earlier investors and pay for, among other things, Cook’s gambling losses and the purchase of a historic mansion in Minneapolis.
The SEC Action charges Cook and Kiley with violating Sections 5 and 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder.
For further information about ponzi schemes, please contact Brenda Hamilton, Securities Attorney at 101 Plaza Real S, Suite 202 N, Boca Raton, Florida, (561) 416-8956, by email at [email protected]. This securities law blog post is provided as a general informational service to clients and friends of Hamilton and Associates Law Group, P.A. and should not be construed as, and does not constitute, legal advice on any specific matter, nor does this message create an attorney-client relationship. Please note that the prior results discussed herein do not guarantee similar outcomes.
Hamilton & Associates | Securities Lawyers
Brenda Hamilton, Securities Attorney
101 Plaza Real South, Suite 202 North
Boca Raton, Florida 33432
Telephone: (561) 416-8956
Facsimile: (561) 416-2855