The firm and its principals are accused of operating a multi-year scheme that yielded millions of dollars.
The SEC charged New Jersey-based claims aggregator and its three principals, Joseph Cammarata, Erik Cohen, and David Punturieri with defrauding distribution funds that were established to return money to securities fraud victims.
The SEC’s complaint alleges that Cammarata, Cohen and Punturieri and two entities that they control, AlphaPlus Portfolio Recovery Corp. and Alpha Plus Recovery, LLC (collectively “AlphaPlus”), stole at least $40 million from approximately 400 distribution funds, including more than $3 million from settlement funds arising from SEC enforcement actions. The complaint alleges that, starting in 2014, AlphaPlus engaged in a serial scheme to fraudulently obtain money by submitting false claims to settlement fund administrators – purporting to represent clients who had traded the securities that were the subjects of the underlying settlements. The complaint further alleges that defendants used false trading data and broker-dealer letterhead they misappropriated from other companies to “document” the purported trades and provide an air of legitimacy to their fake claims. According to the complaint, Cammarata, Cohen, and Punturieri funneled the fraudulently obtained distributions through a web of accounts they controlled and used the stolen money to pay for numerous personal expenses, such as jewelry, home renovations, luxury automobiles, watercraft, and real estate.
The SEC charged AlphaPlus, Cammarata, Cohen, and Punturieri with violating the anti-fraud provisions of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The court granted the SEC’s request for an asset freeze and temporary restraining order. The SEC seeks disgorgement of ill-gotten gains and prejudgment interest, and civil penalties against the defendants.
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The Sonn Law Group is currently investigating allegations surrounding Alpha Plus Recovery, LLC. We represent investors in claims against negligent brokers and brokerage firms. If you or your loved one experienced investment losses, we are here to help. For a free consultation, please call us now at 866-827-3202 or complete our contact form.