A financial advisor and the founder of Blazer Capital Management will pay more than $1.9 million to resolve allegations that he defrauded clients, including some professional athletes. The allegations, brought by the U.S. Securities and Exchange Commission (SEC), claim the advisor used $2.35 million dollars of client money without permission, and lied to agency investigators about it.
The claims state that Pittsburgh-based adviser Louis Martin Blazer III used funds from the accounts of several clients to make investments in a pair of movies and other ventures. To conceal his actions, he diverted client’s funds to other accounts and falsified documents.
The SEC accused Blazer of taking a total of $2.35 million from five clients without authorization, using $790,000 of these funds to pay others in the group in a “Ponzi-like” scheme.
Advisor to Pay $1.9M for Defrauding Athletes
Judge J. Paul Oetken signed off on a final judgment to end the claims brought by the SEC. Under the deal, Blazer agreed to settle without admitting or denying the charges. He will pay $1,558,647 in disgorgement, $220,051.57 in prejudgment interest, and a $150,000 civil penalty for a total settlement of $1,928,698.57.
The final judgment comes approximately 15 months after the SEC filed a complaint against Blazer in the Southern District of New York and simultaneously announced a partial settlement related to the alleged scheme.
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