sec-litreleases litigation_release 65 KB 2,638 chars

SEC v. John F. Turant, Jr.; Russ R. Luciano; JTI Group Fund, LP; Evergreen Investment Group, LP; JTI Investment Group, Inc.; and New Resource Investment Group, Inc., No. LR-18351, Middle District of Pennsylvania — Press Release

raw: John F. Turant, Jr., et al.

John F. Turant, Jr., et al., No. LR-18351

Caption: SEC v. John F. Turant, Jr, et al.

summary

John F. Turant, Jr. and Russ R. Luciano defrauded over 100 investors of $4.5 million by falsely promising high returns from fake hedge funds, using $3.8 million for a Ponzi scheme and personal expenses, leading to SEC civil charges and parallel criminal prosecution.

paragraph

John F. Turant, Jr. and Russ R. Luciano raised approximately $4.5 million from more than 100 investors by falsely claiming the funds would be used to day-trade securities through two purported hedge funds, JTI Group Fund, LP and Evergreen Investment Group, LP, promising annual returns of 20% to 120%. In reality, only a small portion of the money was invested, most was lost, and over $3.8 million was misappropriated—including $2.2 million paid to earlier investors as a Ponzi scheme and nearly $1 million used for personal expenses. The SEC charged Turant, Luciano, and four associated entities with multiple securities law violations, seeking injunctions, disgorgement, prejudgment interest, and civil penalties, while the U.S. Attorney’s Office filed related criminal charges.

narrative

John F. Turant, Jr. and Russ R. Luciano orchestrated a $4.5 million offering fraud between July 1999 and March 2003 by soliciting investments in two fake hedge funds—JTI Group Fund, LP and Evergreen Investment Group, LP—promising investors annual returns of 20% to 120% through purported day-trading strategies. In truth, only a small fraction of the funds were ever invested in securities, and those investments were largely lost; the majority of the $4.5 million raised was diverted for unauthorized purposes. Over $3.8 million was misused, including approximately $2.2 million paid to earlier investors to create the illusion of profitability—a hallmark of a Ponzi scheme—and nearly $1 million siphoned for Turant and Luciano’s personal use. To conceal the fraud, they provided investors with fabricated monthly account statements and false documentation. The Securities and Exchange Commission filed a civil complaint against Turant, Luciano, and four entities they controlled, charging violations of Sections 5(a), 5(c), and 17(a) of the Securities Act of 1933, Section 10(b) and Rule 10b-5 of the Securities Exchange Act of 1934, and Section 7(a) of the Investment Company Act of 1940. The SEC sought permanent injunctions, disgorgement, prejudgment interest, and civil penalties, and coordinated the action with the U.S. Attorney for the Middle District of Pennsylvania, which filed parallel criminal charges against Turant and Luciano.

Enriched metadata

Scheme: ponzi (100%)
Court: Middle District of Pennsylvania
Victim loss: $4,500,000
Victims: 100
Entity: John F. Turant, Jr.

Classified ponzi(confidence 100%). EDGAR detection: forms Form D· recall 35% / precision 15%. detection rule →

Extracted insights

Dollar amounts 5

$4.50M $4.5 MILLION $1M–$10M
$4.50M $4.5 million $1M–$10M
$3.80M $3.8 million $1M–$10M
$2.20M $2.2 million $1M–$10M
$1.00M $1 million $1M–$10M

Entities 2

person prospective investors
agency Securities and Exchange Commission

Triples 16

Securities and Exchange Commission Filed Civil Action No. 3:CV03-1614 (M.D. Pa.)
Securities and Exchange Commission Sued John F. Turant, Jr., Russ R. Luciano and Others
Securities and Exchange Commission Announced Civil Action in the United States District Court for the Middle District of Pennsylvania
John F. Turant, Jr. Solicited Funds Prospective Investors
John F. Turant, Jr. Falsely Represented Investors Would Invest Money in Hedge Funds
John F. Turant, Jr. Promised Annual Returns from 20% to 120%
John F. Turant, Jr. Concealed Scheme
John F. Turant, Jr. Provided Fictitious Monthly Account Statements and Other False Documents
John F. Turant, Jr. Used More Than $3.8 Million for Unauthorized Purposes
John F. Turant, Jr. Misappropriated Almost $1 Million for Personal Use
The Complaint Charges Defendants with Violating Sections 5(a), 5(c) and 17(a) of the Securities Act of 1933
The Complaint Charges Defendants with Violating Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 Thereunder
The Complaint Charges JTI Group Fund, LP and Evergreen Investment Group, LP with Violating Section 7(a) of the Investment Company Act of 1940
The Commission Seeks Permanent Injunctions, Disgorgement, Prejudgment Interest and the Imposition of Civil Penalties
The Commission Brought Action in Coordination with the United States Attorney for the Middle District of Pennsylvania
The United States Attorney for the Middle District of Pennsylvania Filed Related Criminal Charges Against Turant and Luciano

View original SEC litigation releasesec.gov

Extracted body text (2,638c)

LITIGATION RELEASE No. 18351 / September 15,2003 Securities and Exchange Commission v. John F. Turant, Jr., et al., Civil Action No. 3:CV03-1614 (M.D. Pa.) SEC SUES JOHN F. TURANT, JR., RUSS R. LUCIANO AND OTHERS FOR RAISING $4.5 MILLION IN OFFERING FRAUD The Securities and Exchange Commission ("Commission") announced today that it filed a civil action in the United States District Court for the Middle District of Pennsylvania against John F. Turant, Jr., of Wapwallopen, Pennsylvania, Russ R. Luciano, of Duryea, Pennsylvania and four entities operated by them, alleging an offering fraud in which the defendants raised approximately $4.5 million from more than 100 investors. The Commission's complaint alleges that, from July 1999 until March 2003, Turant and Luciano solicited funds by falsely representing to prospective investors that they would invest their money in one of two purported hedge funds, defendants JTI Group Fund, LP and Evergreen Investment Group, LP, for the purpose of day-trading securities, promising annual returns from 20% to 120%. The complaint alleges that, in fact, only a small portion of the money raised was ever invested, that the funds were never profitable, and that much of the money that was invested was lost. Turant and Luciano then concealed their scheme and lulled investors by providing fictitious monthly account statements and other false documents to investors. The complaint further alleges that, of the $4.5 million raised, Turant and Luciano used more than $3.8 million for unauthorized purposes, including paying approximately $2.2 million to existing investors, in the nature of a Ponzi scheme. In addition, Turant and Luciano misappropriated almost $1 million for their personal use. Named as defendants in the Commission's action are Turant, Luciano, JTI Group Fund, LP, Evergreen Investment Group, LP and the general partners of the funds, JTI Investment Group, Inc. and New Resource Investment Group, Inc. The complaint charges all of the defendants with violating Sections 5(a), 5(c) and 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder; and defendants JTI Group Fund, LP and Evergreen Investment Group, LP with violating Section 7(a) of the Investment Company Act of 1940. The complaint seeks permanent injunctions, disgorgement, prejudgment interest and the imposition of civil penalties. The Commission brought this action in coordination with the United States Attorney for the Middle District of Pennsylvania, who has filed related criminal charges against Turant and Luciano. SEC Complaint in this matter

OCR text (2,638c · plain-text · 99% conf)