NEW YORK Jan 23 A man suspected of fraudulently
collecting money from investors to buy shares in big-name
private companies was arrested on Thursday after failing to
respond to subpoenas, the U.S. Securities and Exchange
Anthony Coronati, of Staten Island, New York, was arrested
after he did not respond to the SEC's requests for documents and
testimony and then ignored related a civil judgment against him,
the SEC said in a statement.
According to the SEC, Coronati was running a business in
Staten Island called Bidtoask.com in which he solicited funds he
said would be used to buy shares of private companies that might
soon go public. Using Facebook as an example, Coronati
tried to convince potential investors that purchasing shares of
a company before an initial public offering would generate big
returns for them.
Officials suspect Coronati was using money he collected from
investors to pay for personal expenses, the release said.
Coronati was not represented by a lawyer when he appeared in
U.S. District Court in Manhattan on Thursday. He was released on
a $50,000 bond, according to the SEC's announcement.
Coronati did not immediately respond to calls seeking