The US SEC has announced more charges in its case against individuals involved in a kickback scheme to secure the bond trading business of a state-owned Venezuelan bank.
The Securities and Exchange Commission has announced more charges in its case against individuals involved in a kickback scheme to secure the bond trading business of a state-owned Venezuelan bank.
The SEC alleges two executives at the New York City-based brokerage firm Direct Access Partners - which has filed for bankruptcy - were “integral participants” in the fraud.
Benito Chinea, co-founder and chief executive of the firm, and Joseph DeMeneses, managing partner of global strategy, “devised and facilitated sham arrangements to conceal multi-million dollar kickback payments to a high-ranking Venezuelan finance official of the bank,” the US authority said.
The allegations were made in a second amended complaint - which remains subject to court approval - that the SEC submitted in a federal court in Manhattan as part of its pending action against four individuals with ties to DAP, and the head of DAP’s Miami, Florida, office, who were charged last year.
The authority is seeking disgorgement of ill-gotten gains plus interest and financial penalties against Chinea and DeMeneses, as well as the five previously-named defendants with ties to DAP.
The investigation continues.