International Law

Restitution in Polish Fraud Case

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"16.5 million dollars is to be distributed to the victims of a scheme that defrauded Polish investors.

The money was obtained through a civil forfeiture action filed by the United States Government in Manhattan federal court to recover the proceeds of the scheme.

This case marks the first time the United States Government has returned fraud proceeds to victims in Poland.

The forfeiture action arose from the investigation of two entities in Poland -- WGI Dom Maklerski ("WGI DM") and WGI Consulting S.P. Z.O.O. ("WGI Consulting") -- for their roles in a scheme to defraud investors in Poland.

Among other things, WGI DM sent false statements to its clients that inflated the value
of their investments.

WGI DM also forged documents, including bank statements, in furtherance of the scheme.

The Polish Securities and Exchange Commission ("PSEC") revoked WGI DM's
license and directed it to repay portfolio balances within 60 days to clients who requested a refund.

A total of 700 clients requested a refund, but none received any money.

The PSEC also referred the matter for criminal prosecution."

Full post as published by Misleading Advertising Law on June 07, 2008 (boomark / email).