Investment manager Frank Preve pleaded guilty to conspiracy to commit wire fraud for his involvement in Scott Rothstein’s $1.2 billion Ponzi scheme. Preve, who worked for feeder fund Banyon Capital LLC, was charged after it was claimed he should have known that documents for legal settlements from Rothstein’s firm were shams. Although his attorney maintains he had no knowledge of the Ponzi scheme, Preve’s plea was for failing to disclose certain facts to investors. Preve faces up to five years in prison and a fine of up to $250,000. Rothstein is currently serving a 50-year prison sentence for the fraud.
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Originally published by Carolina Bolado | Aug 19, 2014 | Law360
