{"id":53791,"date":"2023-08-09T15:36:13","date_gmt":"2023-08-09T22:36:13","guid":{"rendered":"https:\/\/cjnotebook.com\/?p=53791"},"modified":"2023-08-09T15:36:13","modified_gmt":"2023-08-09T22:36:13","slug":"wanted-and-convicted-felon-allegedly-posed-as-ivy-leaguer-to-run-a-3-1-million-stock-scam","status":"publish","type":"post","link":"https:\/\/cjnotebook.com\/?p=53791","title":{"rendered":"Wanted and Convicted Felon Allegedly Posed as Ivy Leaguer to Run a $3.1 Million Stock Scam"},"content":{"rendered":"<p class=\"yiv3339273467MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\"><strong><em>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0SANTA ANA, California<\/em><\/strong><\/span><\/p>\n<p class=\"yiv3339273467MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\"><a href=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2023\/08\/vvh_9ooeez0.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-53793 alignleft\" src=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2023\/08\/vvh_9ooeez0-300x219.jpg\" alt=\"the seal of the department of justice on a wall\" width=\"300\" height=\"219\" srcset=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2023\/08\/vvh_9ooeez0-300x219.jpg 300w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2023\/08\/vvh_9ooeez0-1024x748.jpg 1024w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2023\/08\/vvh_9ooeez0-768x561.jpg 768w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2023\/08\/vvh_9ooeez0-1536x1122.jpg 1536w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2023\/08\/vvh_9ooeez0.jpg 1600w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/a>\u00a0A convicted felon who allegedly posed as an experienced Wall Street stock trader has been charged with running a securities scam that caused victim investors to lose approximately $3.1 million, the Justice Department announced Tuesday.<\/span><\/p>\n<p class=\"yiv3339273467MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\">\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 , 50, a.k.a. \u201cKeith Renko,\u201d was charged with eight counts of wire fraud in an indictment filed on August 2. <\/span><\/p>\n<p class=\"yiv3339273467MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\">Slaga is currently a fugitive being sought by authorities.<\/span><\/p>\n<p class=\"yiv3339273467MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 According to the indictment, from at least March 2018 through this year, Slaga operated several companies, including JMC 4 Group LLC and Q4 Capital Group LLC, that purportedly traded businesses that implemented \u201cdifferent strategies for long-term and short-term gains\u201d through \u201ca bifurcated trading approach.\u201d <\/span><\/p>\n<p class=\"yiv3339273467MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\"><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-6759 alignright\" src=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/10\/Department-of-Justice-300x197.jpg\" alt=\"\" width=\"300\" height=\"197\" srcset=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/10\/Department-of-Justice-300x197.jpg 300w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/10\/Department-of-Justice-90x60.jpg 90w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/10\/Department-of-Justice.jpg 600w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/>In addition to being the president and CEO of these companies, Slaga \u2013 using his \u201cKeith Renko\u201d alias \u2013 purportedly ran JMC 4 and Q4 Capital\u2019s East Coast operations and trading desk before establishing a West Coast office and a trading desk in Newport Beach.<\/span><\/p>\n<p class=\"yiv3339273467MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Using private placement memoranda (PPM) \u2013 securities disclosure forms issued by companies engaging in private securities offerings \u2013 as well as websites, emails and telephone calls, Slaga allegedly solicited individual investors to make capital commitments of at least $25,000 to his companies, falsely telling them that he was running a hedge fund for lay people.<\/span><\/p>\n<figure id=\"attachment_3664\" aria-describedby=\"caption-attachment-3664\" style=\"width: 300px\" class=\"wp-caption alignright\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-3664 size-medium\" src=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/06\/Cyber-Crimes-300x189.jpg\" alt=\"\" width=\"300\" height=\"189\" srcset=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/06\/Cyber-Crimes-300x189.jpg 300w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/06\/Cyber-Crimes-120x76.jpg 120w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/06\/Cyber-Crimes-265x168.jpg 265w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/06\/Cyber-Crimes-284x180.jpg 284w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/06\/Cyber-Crimes-274x173.jpg 274w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/06\/Cyber-Crimes-220x140.jpg 220w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/06\/Cyber-Crimes.jpg 520w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><figcaption id=\"caption-attachment-3664\" class=\"wp-caption-text\">Source: FBI<\/figcaption><\/figure>\n<p class=\"yiv3339273467MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\">Slaga promised victims he would use their money to invest in a broad range of securities by using a proprietary computer-based quantitative and statistical algorithm through brokerage accounts at JPMorgan and Goldman Sachs, the indictment alleges. <\/span><\/p>\n<p class=\"yiv3339273467MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\">His purported investment objective was to \u201cmaximize total return on capital by seeking capital appreciation,\u201d according to the indictment.<\/span><\/p>\n<p class=\"yiv3339273467MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 In each of the PPMs, Slaga allegedly falsely claimed he made capital investments of at least $2 million into his companies and that he was a \u201cseasoned trader\u201d who previously worked at Merrill Lynch and who was a Dartmouth College graduate.<\/span><\/p>\n<p class=\"yiv3339273467MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Slaga allegedly failed to disclose as required to investors that in 2003 he was convicted of wire fraud in the Southern District of Texas, was sentenced to four years in federal prison, and was ordered to pay $19,665,300 in restitution.<\/span><\/p>\n<p class=\"yiv3339273467MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Slaga allegedly never invested the victim investors\u2019 money in JMC 4 and Q4 Capital. Instead, he used it to repay other investors, pay commissions, and for his own personal expenses, such as rent, loan and credit card payments, personal stock trading, and private school payments, according to the indictment. <\/span><\/p>\n<p class=\"yiv3339273467MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\">He allegedly also produced bogus documentation purportedly from Deloitte, JPMorgan and Goldman Sachs to show investors false holdings and fabricated returns.<\/span><\/p>\n<p class=\"yiv3339273467MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\">\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 According to the indictment, Slaga caused 13 investors to lose approximately $3.1 million.<\/span><\/p>\n<p class=\"yiv3339273467MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<\/span><span style=\"font-size: 20px;\">\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 Slaga faces up to 20 years in federal prison for each wire fraud count if convicted of all charges.<\/span><\/p>\n<p class=\"yiv3339273467MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\">\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 On Monday, the United States Securities and Exchange Commission <a href=\"https:\/\/www.sec.gov\/litigation\/litreleases\/lr-25804\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">filed a lawsuit<\/a>\u00a0against Slaga in connection with the alleged scheme to defraud investors.<\/span><\/p>\n<p class=\"yiv3339273467MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 The FBI is investigating this matter.<\/span><\/p>\n<p class=\"yiv3339273467MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px;\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Assistant United States Attorney Jennifer L. Waier of the Santa Ana Branch Office is prosecuting this case.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0SANTA ANA, California \u00a0A convicted felon who allegedly posed as an experienced Wall Street stock trader has been charged with running a securities scam that caused victim investors to lose approximately $3.1&#8230;<\/p>\n","protected":false},"author":1,"featured_media":53792,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3255],"tags":[],"class_list":["post-53791","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-federal-court"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.6 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Wanted and Convicted Felon Allegedly Posed as Ivy Leaguer to Run a $3.1 Million Stock 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