Sandra Venetis, Systematic Financial Investment Fraud Busted


September 10, 2009 – Sandra Venetis was allegedly operating her three entities, Systematic Financial Services, Inc., Systematic Financial Associates Inc., and Systematic Financial Services LLC, as a Ponzi scheme. According to the complaint filed by the Securities and Exchange Commission (“SEC”), Venetis bilked investors for at least $11 million since 1997 by promising returns of 6 to 11 percent per year. Apparently, Venetis misappropriated investor funds for her own personal use and for her relatives.

Apparently, Venetis lured investors by offering promissory notes, fixed income investments, and other supposedly lucrative investments. The complaint alleges that Venetis claimed that the promissory notes were backed by the Federal Deposit Insurance Corporation (“FDIC”) and that the interest payments would be tax free. Venetis also apparently told some investors that their money would be used for loans to various doctors backed by Medicare reimbursements. The SEC claims that Venetis completely made up the names of the doctors and falsified their signatures on loan documents.

According to the complaint, the promissory notes and other offerings were not backed by any legitimate investments. Venetis apparently used the money to pay her personal and business debts, as well as finance her gambling and extravagant vacations. Venetis also allegedly bought a house for her daughter and paid for improvements on her brother’s home.

Systematic Financial Associates Inc. is an investment adviser, Systematic Financial Services LLC is an accounting and tax preparation firm, and Systematic Financial Services, Inc. was organized to perpetrate the fraud.

Last week in the U.S. District Court of New Jersey, Venetis and her entities agreed to settle with the SEC by agreeing to all of the relief sought in its complaint. The relief includes permanent injunctions prohibiting future violations of financial laws, disgorgement of ill gotten gains, asset freezes and other civil penalties.

Source: SEC

If you invested with Systematic Financial and/or Sandra Venetis, or are the victim of some other type of investment fraud, the Law Offices of the attorney, and its affiliates, is prepared to review your situation and potential claim(s) without charge, and will consider representing you on a contingent fee basis, which means that you will not have to pay out of pocket for your legal representation. The firm will take a fee only if we are successful in recovering your assets.
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