NewAlliance IPO Investor Hit With Fraud Suit

Law360, New York (September 2, 2009, 5:37 PM EDT) -- The U.S. Securities and Exchange Commission has accused investor Gary Richetelli of participating in illegal arrangements to obtain stock in NewAlliance Bancshares Inc.'s initial public offering, raking in more than $850,000 in illicit profits.

The agency's action arose out of the 2004 conversion of New Haven Savings Bank from a mutual form of organization to a stock form of organization as NewAlliance, according to the complaint filed Tuesday in U.S. District Court for the District of Connecticut.

The SEC is seeking disgorgement of the illicit gains,...
To view the full article, register now.