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Topic: Black bandit team in trouble? Email this topic to a friend | Subscribe to this TopicReport this Topic to Moderator
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methanolman
May 25, 2012 at 05:16:55 PM
Joined: 05/25/2012
Posts: 2
Reply

Just saw on line that owner of team (Chris Luck) company in CA is being sued by SEC for commiting fraud and operatiing ponzi scheme. FBI is investagating as to whether or not to press charges. Around 60 million bucks deverted/missing/???




speedracer14
May 25, 2012 at 05:38:23 PM
Joined: 12/03/2004
Posts: 117
Reply

May, 2012:

Securities and Exchange
Commission v. GLR Capital Management, LLC, GLR Advisors, LLC, Geringer, Luck
& Rode LLC, John A. Geringer, and Relief Defendant GLR Growth Fund, L.P.,
Civil Action No. 12-02663 (U.S. District Court for the Northern District of
California, filed May 24, 2012)

SEC CHARGES NORTHERN CALIFORNIA
FUND MANAGER IN $60 MILLION SCHEME

Recently, the Securities and
Exchange Commission charged an investment adviser in Scotts Valley, Calif., with
running a $60 million investment fund like a Ponzi scheme and defrauding
investors by touting imaginary trading profits instead of reporting the actual
trading losses he had incurred.

The SEC alleges that John A.
Geringer, who managed the GLR Growth Fund (Fund), used false and misleading
marketing materials to lure investors into believing that the Fund was earning
double-digit annual returns by investing 75% of its assets in investments tied
to well-known stock indices like the S&P 500, NASDAQ, and Dow Jones. In
reality, Geringer's trading generated consistent losses and he eventually
stopped trading entirely. To mask his fraud, Geringer paid millions of dollars
in "returns" to investors largely by using money received from newer investors.
He also sent investors periodic account statements showing fictitious growth in
their investments.

According to the SEC's
complaint filed in federal court in San Jose, Geringer raised more than $60
million since 2005, mostly from investors in the Santa Cruz area. Geringer used
fraudulent marketing materials claiming that the Fund had between 17 and 25
percent annual returns in every year of the Fund's operation through investments
tied to major stock indices. Although the Fund was started in 2003, marketing
materials claimed 25 percent returns in 2001 and 2002 - before the Fund even
existed. The marketing materials also falsely indicated a nearly 24 percent
return in 2008 from investing mainly in publicly traded securities, options, and
commodities, while the S&P 500 Index lost 38.5 percent.

The SEC alleges that
Geringer's actual securities trading was unsuccessful, and by mid-2009 the Fund
did not invest in publicly traded securities at all. Instead, the Fund invested
heavily in illiquid investments in two private startup technology companies. The
rest of the money was paid to investors in Ponzi-like fashion and to three
entities Geringer controlled that also are charged in the SEC's complaint.

According to the SEC's
complaint, Geringer further lied to investors on account statements that falsely
claimed "MEMBER NASD AND SEC APPROVED." The SEC does not "approve" funds or
investments in funds, nor was the Fund (or any related entity) a member of the
NASD (now called the Financial Industry Regulatory Authority - FINRA). Geringer
also falsely claimed that the Fund's financial statements were audited annually
by an independent accountant. No such audits were performed.

The SEC's complaint alleges
Geringer and three related entities violated or aided and abetted violations of
Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities
Exchange Act of 1934 (Exchange Act) and Rule 10b-5 thereunder, and Section
206(1), (2), and (4) of the Investment Advisers Act of 1940 and Rule 206(4)-8
thereunder. The complaint also alleges the defendants violated or aided and
abetted violations of Section 26 of the Exchange Act, which bars persons from
claiming the SEC has passed on the merits of a particular investment. The SEC's
complaint names the Fund as a relief defendant. The complaint seeks preliminary
and permanent injunctions, disgorgement of ill-gotten gains, civil monetary
penalties, and other relief. Geringer, the Fund, and two of the GLR entities
consented to the entry of a preliminary injunction and a freeze on the Fund's
bank account



TheBlackBandit
MyWebsite
May 25, 2012 at 05:55:58 PM
Joined: 12/29/2011
Posts: 32
Reply

CL Motorsports co-owner Chris Luck was not named in the charge filed by the SEC today. CL Motorsports and partners DDNi and MediaTile will not be affected going forward and the team is competing tonight at Williams Grove Speedway before heading to Fremont, Ohio on Saturday.


The One............The Original............... THE BLACK BANDIT 



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