Issue link: https://newsleader.uberflip.com/i/316941
The indictment says that on Jan. 5, 2010, an individual who had invested money in June 2009 "purchased an additional $400,000 in A-G [Hedge Group] notes. Della Penna did not disclose to this individual A-G's insolvency and its need for investor money to fund pay- ments to prior investors and to support Della Penna's spending. A-G ultimately depleted the January 2010 investment as well due to trad- ing losses and payments to Della Penna, and A-G's noteholders suffered significant losses." Between August 2010 and October 2013, Della Penna solicited investors to purchase Contrarian notes, another private offering, the indictment alleges. Regarding New Economy, the indictment alleges that the "first investor group consisted of members of a family and the family's trust entities." In the fall of 2012, it says, "Della Penna told one of the family members he planned on doubling investors' profits by trad- ing options on exchange traded funds. Della Penna did not disclose A-G and Contrarian's recent history of unsuccessful trading." The indictment further alleges that Della Penna raised about $532,000 from private investors between January 2011 and March 2013 and deposited the money in bank accounts in the name of Gaeton Capital. "Della Penna used only $40,000 of these funds for investment purposes, spending the bal- ance on payments to earlier investors and for personal expenses," the indictment says. This news release from the U.S. Attorney's office notes that the case was investigated by the U.S. Secret Service and the Sarasota County Sheriff's Office. % For the best viewing experience on a computer click the icon in the menubar to zoom to fullscreen mode. QUICK TIP Share stories by clicking the icon in the menubar and choosing to share via e-mail, post to Facebook or Twitter, or many other sharing options. QUICK TIP Sarasota News Leader May 23, 2014 Page 54