BOSTON (Reuters) - The U.S. Justice Department on Tuesday charged a Florida-based wealth adviser, a convicted felon using the name Dr. Terrence Cash, with fraudulently inducing individuals to invest in his “Greenlight”-branded wealth management businesses.
The U.S. Securities and Exchange Commission on Tuesday announced parallel civil charges here against the suspect, whose real name is Terrence Chalk, and his Greenlight group of businesses for fraudulent securities offerings and a "Ponzi-like scheme."
Chalk, 58, did not immediately respond to requests for comment.
The firm has no connection to David Einhorn’s New York-based hedge fund firm, Greenlight Capital Inc.
According to charges here unveiled by the Department of Justice's Manhattan office, Chalk used the "Cash" name to hide a decade-old conviction for fraud-related offenses in New York.
He was able to solicit more than $4 million in investments but, according to the complaint, spent most of the money on himself, including $70,000 paid to a luxury car dealer and $17,000 to an NBA team for season tickets.
Chalk’s website for Greenlight Advantage group states that “Dr. Cash” and his companies offer “transformative solutions that are non-conventional and counter-intuitive, that are based on the hidden secrets of the wealthy elite.”
Reporting by Lawrence Delevingne in Boston; Editing by Tom Brown
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