Platinum’s Former Chief Marketing Officer – Conning Investors

LAW360

Ex-Platinum Exec Tells Jury He Conned Investors

Law360, New York (May 15, 2019, 8:56 PM EDT) — A former Platinum Partners executive on Wednesday told jurors he lied to existing and prospective investors in the hedge fund manager’s largest fund, the second former insider to testify at trial about misconduct at Platinum’s highest levels.

Andrew Kaplan, Platinum’s former chief marketing officer, took the witness stand in Brooklyn federal court in the trial of Platinum co-founder Mark Nordlicht, former co-chief investment officer David Levy and former chief financial officer Joseph SanFilippo.

Kaplan, 53, who has pled guilty to securities fraud conspiracy and agreed to cooperate with prosecutors, told the jury he lied to investors and prospective investors in Platinum Partners Value Arbitrage Fund LP about the liquidity of the underlying investments, as well as the fund’s ability to repay investors and the fact that some were receiving preferential treatment.

Jurors also heard conversations between Kaplan, Nordlicht and others that Kaplan had recorded, including one from mid-September 2014 after Platinum had received a negative review by a hedge fund consultant. In the recording, Nordlicht spoke of trying to get more “marketable liquidity.”

“For anyone to invest with us would be a breach of fiduciary duty right now until we straighten this out,” Nordlicht said.

Prosecutors say Nordlicht, Levy and SanFilippo defrauded investors by overvaluing assets and concealing cash-flow problems in PPVA, while Platinum pocketed millions of dollars in fees.

Read more at: https://www.law360.com/trials/articles/1160198/ex-platinum-exec-tells-jury-he-conned-investors?copied=1

2 thoughts on “Platinum’s Former Chief Marketing Officer – Conning Investors

  1. Mark, a very shrewd businessman. Defraud the people of there hard earned money
    Guys like Mark will never have enough money.
    The more they have the more they want, They have no peace and then end up behind bars.
    Intelligent masterminds of corruption end up destroying themselves and the poor people also.
    This sounds like a Peter Sellers movie when Sellers sitting in jail said. If I could only steal enough
    I would be an honest man.

    • The sad thing is that there are people we have spoken to who worked for these companies and are utterly convinced they were doing nothing wrong. They believe wholeheartedly that the whole thing was legal. Mark Nordlicht is brilliant. He comes from brilliance, and associated with a line of financial gymnasts, one more clever than the other and each gifted in his own skill. It will not stop because these guys are serial criminals, no different from rapists or other serial criminals, just a different sort of victim, a different kind of adrenaline. These guys will be sitting in Ottisville Prison together eating gefilte fish and plotting the next great venture if it is not already in process. They can’t see past their own adrenaline rush to feel anything at all for their victims. The frightening reality is that there are families, like some of Madoff’s victims, that will NEVER recover. Huberfeld, Nordlicht, Rechnitz, Levy, and so many others should be stripped of all of their family’s assets, stripped. Until the justice system takes dramatic steps, it will not end and there will not be justice for the victims.

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