John Geraci, Securities and Wire Fraud, New York 2018
Founder of Meridian Capital Asset Management Pleads Guilty in Manhattan Federal Court
Grimy Times Exclusive: The principal and founder of Meridian Capital Asset Management, JOHN GERACI, has pleaded guilty to conspiring to commit securities and wire fraud in Manhattan federal court. This shocking revelation was announced by Geoffrey S. Berman, the United States Attorney for the Southern District of New York.
According to the United States Attorney, GERACI’s plea stems from his participation in a scheme to defraud clients of his company, Meridian Capital Asset Management. The scheme involved causing two clients, referred to as “Victim-1” and “Victim-2,” to invest in a hedge fund called the Meridian Matrix Long Short Fund (the “Meridian Matrix Fund”).
Between in or about December 2015 and November 2016, GERACI provided fictitious account statements and updates to Victim-1 and Victim-2, telling them that their investment was worth millions when, in reality, GERACI knew that large portions of it had been stolen by the Meridian Matrix Fund’s administrator.
In a shocking twist, GERACI eventually liquidated the Meridian Matrix Fund and misappropriated significant portions of the remaining funds. Although he had recovered over $1 million of Victim-1 and Victim-2’s investment, GERACI falsely told them that their entire investment had been lost, and improperly used their money to pay his own personal and business expenses.
As a result of his guilty plea, GERACI is facing serious consequences. He was arrested on August 7, 2018, and will be sentenced at a later date. The exact date of sentencing has not been announced.
The Southern District of New York is investigating this case. The charges against GERACI include conspiring to commit securities and wire fraud.
The total amount of money misappropriated by GERACI is not specified in the report. However, it is clear that his actions were a significant financial loss for his clients.
The city of New York is where this case unfolded. The alleged crimes took place in the city’s financial district.
This case highlights the importance of proper financial oversight and regulation. It serves as a reminder that those who engage in financial crime will be held accountable.
Key Facts
- State: New York
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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