Archive

Reuters blog archive

from Unstructured Finance:

Tyrone Gilliams fights the law

By Matthew Goldstein

It's been a while since we last wrote about the legal struggles of Tyrone Gilliams, the Philadelphia commodities trader/hip-hop promoter/wannabe reality show star/self-styled preacher, whom federal authorities have charged with scamming investors out of $5 million. But the University of Pennslyania graduate is making news again with the scheduled start of his Jan. 22 criminal trial in New York federal court.

Gilliams will be on trial with his former lawyer Everette Scott. Both men are charged with working together to "devise a scheme and artifice to defraud" investors out of their money that was supposed to have been invested in Treasury Strips--a derivative of U.S. Treasury bonds the separates the coupon and principal on the underlying note into different securities.

For the details of where the investors' money allegedly went, read our earlier special report from May 2011 and this feature article from last year in Philadelphia magazine.

Federal prosecutors don't appear to be taking the trial lightly. Just a few weeks ago, prosecutors revised the indictment against Gilliams and Everette to  spell out more details of how money that was raised to invest in Treasury Strips was largely misappropriated. In a court filing, prosecutors indicated that they could call as many as two-dozen witnesses.

from Unstructured Finance:

Suite Scams revisited

Virtual offices can be a great cost-saver for a solo attorney, a lone accountant or any other professional who can't afford the expense  of maintaining a separate support staff to run a business. But these outfits, in which a solo professional gets to essentially rent the services of a receptionist, a secretary and conference space, also can provide cover for bad guys bent on doing mischief.

A case in point is Robert Sucarato, a New Jersey man, who was sentenced Friday to 11 years in a federal prison for using a virtual office as a front for an alleged multi-billion hedge fund that bilked investors out of $1.6 million. A few years ago, when I was at BusinessWeek, I wrote about Sucarato long before federal prosecutors were on his trail. The BW story was called "Suite Scams" and it focused on much more than Sucarato and showed how virtual offices were proving to be a useful tool for Wall Street fraudsters with a slick website and a good marketing pitch.

from Unstructured Finance:

Tyrone Gilliams keeps going and going despite charges

By Matthew Goldstein

It's been an eventful month for hip-hop promoter and commodities trader Tyrone Gilliams, the man federal authorities allege defrauded investors out of at least $5 million.

The self-styled Philadelphia philanthropist was indicted by federal prosecutors on securities fraud charges on Nov. 14 after being arrested on criminal complaint in October. The Securities and Exchange Commission this week also filed civil fraud charges against the 44-year-old former University of Pennsylvania graduate and college star basketball player.

from Unstructured Finance:

The law catches up to TL Gilliams

By Matthew Goldstein

Tyrone Gilliams Jr. wanted to live a larger than life story--with much of it playing out last year in videos he had produced and plastered all over the Internet. A year later, Gilliams true life drama has him fighting to maintain his freedom.

On Oct. 5, federal authorities arrested Gilliams and charged him with wire fraud in connection with a $4 million investment scheme that Reuters chronicled in a Special Report in May. As noted in yesterday's arrest story, U.S. prosecutors in New York didn't begin looking into Gilliams until Reuters reported that he allegedly had used some of his investors' money to reinvent himself as a Philadelphia-area philanthropist.

from Blogs Dashboard:

Remember the Philly trader?

Back in May, Matthew Goldstein wrote about commodities trader and hip-hop promoter Tyrone Gilliams in the special report “A fame-seeking Philly trader’s rap falls flat.”

Today Gilliams was arrested on charges of running a $4 million investment scam.

Time to re-read the original story, which detailed allegations by Ohio businessman David Parlin that Gilliams used some of Parlin's money to sponsor a glitzy black-tie charitable event in Philadelphia attended by rappers and local politicians.

  •