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,...
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