|
Aug. 26, 2011
Alleged swindler trial
Montrealer is accused of running Ponzi scheme.
JANICE ARNOLD CANADIAN JEWISH NEWS
Perry Newman, 51, faces nine charges of fraud, theft and forgery. Between 1996 and 2010, Newman allegedly swindled between $10 million and $12 million from between 12 to 15 people who believed he was investing their money legitimately, said lawyer Neil Stein, who represents the alleged victims.
As of press time, Newman had not entered a plea. He was released after his arrest by Montreal police on a promise to appear in court at a later date.
The largest amount – $5 million – was allegedly lost by Edith Olanoff of Israel, who made the first complaint to police. All of the other victims live in New York, and two of them are out between $300,000 to $400,000 each, Stein said.
Under a Ponzi scheme, “returns” are paid out to longer-term investors from money coming in from newer ones.
Newman presented himself as a financial adviser and had a company, Dover Financial, that was registered in the Caribbean country of Turks and Caicos.
Stein claims Newman sent out bogus statements to his clients about how their investments were doing using the forged letterhead of FC Stone, a legitimate brokerage firm in the United States.
“He never invested one dime of his so-called clients’ money,” Stein said.
According to Stein, Newman preyed on observant Jews, with whom he claimed to identify. The accused settled in Montreal in the mid-1990s from his native England, where, he has made known, he had attended a religious educational institution. Newman, who lived in Hampstead, attended services at a Côte St. Luc synagogue.
Through bankruptcy trustees RSM Richter, Stein has launched civil proceedings against Newman’s wife, Sarah Stern-Newman, and the couple’s three sons to recover a total of $1.5 million that they are alleged to have received through Dover. No criminal charges have been laid against them.
Civil proceedings have also begun against those of Newman’s clients who made a profit on the money they invested.
Newman himself is now bankrupt, following proceedings against him last year.
A document submitted to the court by the trustee alleges Newman used his “Jewish Orthodox roots to convince investors of his honesty, his high level of ethical standards and his financial capacity.”
For more national Jewish news, visit cjnews.com.
^TOP
|
