Two Swiss residents have been held liable by a Las Vegas federal judge for an $18 million investment scheme dubbed Malom – an acronym for “Make a Lot of Money”. In December 2013 the U.S. Securities and Exchange Commission (SEC) filed a complaint against Martin Schlaepfer and Hans-Jurg Lips, the principals of the investment scheme, alongside four others, for duping more than 30 investors into investing $11 million into Malom Group AG, a “sham company” in Switzerland.
Malom Group Scam Generates Criminal Case
Criminal prosecutors similarly charged the six defendants in the Malom Group scam in December 2013 with fraud and conspiracy, saying they promised high rates of return using fake documents showing sizable deposit balances at prominent European banks.
Judgements Include Pay Back of Hefty Sums
The U.S. District judge entered judgments against Schlaepfer and Lips, making them jointly liable for $10.6 million of disgorgement, $2.1 million of interest, and a $5.5 million civil penalty.
Micelli, a disbarred lawyer, is currently serving a five-year sentence after he pled guilty to conspiracy to commit wire fraud and securities fraud. Finn is awaiting transfer to the United States from Canada, according to a Nevada Justice Department spokesman.
The judge also entered judgments against two other scheme participants, James C. Warras and Anthony B. Brandel, finding their December 2015 conviction by a criminal jury entitled the SEC to a final judgment. The criminal case resulted in the sentencing of Warras and Brandel to 87 months each in August 2016.
Have You Been a Victim of an Investment Scheme?
If you believe you have been the victim of an investment scheme, you may have certain legal rights that require your immediate attention.
Call an Investment Fraud Attorney Today
If you are looking for an investment fraud attorney to review your rights and options, the investment fraud lawyers at Dimond Kaplan & Rothstein, P.A. have recovered more than $100 million from banks and brokerage firms for their wrongful actions.