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| William Galvin |
Regulators from the State of Massachusetts last week filed charges against Eagle Trades and Osiris FX for failure to pay redemptions and other possibly fraudulent practices. The charges were filed by Secretary of the Commonwealth William Galvin, who also charged the two firms of operating in the state without first registering. The two charged firms have onshore and offshore business units.
"In these uncertain economic times, it is tempting to range far and wide in search of better returns, but the searchers can fall prey to schemes that flourish in just such times," Galvin said. "Improbable rates of return, while attractive, are red flags adorning scams."
As evidence, Galvin revealed documents showing promises made by Eagle Trades two years ago of promised six-month returns of nearly 300%. The documents were handed out at an investor meeting also attended by Osiris FX. Eagle is said to have almost $1.7 million under management.
Individuals were also charged by the state: Glenn Manterfield, Evan Andersen, and Alberto Sciola from Osiris FX and Terrance Osberger from Eagle Trades. Andersen had previously been barred from the Massachusetts securities industry after he and Manterfield were accused of defrauding investors in the Lydia Capital hedge fund, which they ran until its downfall in 2007. The Securities and Exchange Commission also participated in the earlier charges.
"These two cases also highlight the importance of investors' checking on those who would sell them securities," Galvin said. "A call to the Securities Division can establish if a person or firm is registered to do business in Massachusetts. In the Osiris matter, a caller to the Securities Division would have discovered the sanctions against Manterfield and Andersen."
