U.S. charges 'Porn's New King' with tribal bond fraud
Source: Reuters
U.S. charges 'Porn's New King' with tribal bond fraud
By Nate Raymond and Jonathan Stempel
May 11, 2016
By Nate Raymond and Jonathan Stempel
NEW YORK (Reuters) - A man once dubbed "Porn's New King" before he was accused of stock fraud was hit on Wednesday with new criminal charges over an alleged scheme to cheat investors and a Native American tribe out of tens of millions of dollars.
U.S. authorities said Jason Galanis enlisted his father, John, and five others to defraud clients who invested more than $43 million in illiquid, sham bonds issued in 2014 and 2015 by the Wakpamni Lake Community Corp, an affiliate of the Oglala Sioux Nation in South Dakota.
Rather than invest proceeds to provide capital for the tribe and make payments to bondholders, Jason Galanis, of Los Angeles, and his accomplices spent the money on other investments, support for a technology company's initial public offering, and luxury goods at retailers such as Gucci and Prada, authorities said.
Jason Galanis, 45, and John Galanis, 73, were also accused of diverting money to defend against criminal charges announced last September over an alleged pump-and-dump swindle that cost investors in the reinsurer Gerova Financial Group Ltd nearly $20 million.
Read more: https://www.yahoo.com/news/u-charges-porns-king-tribal-bond-fraud-182039509--sector.html?nhp=1
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Jason Galanis [/center]
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