Feds Call Philly PE Firms A Ponzi Scheme, Bosses Indicted

Law360, New York (July 3, 2017, 5:08 PM EDT) -- The heads of a pair of purported private equity boutiques last week were charged with running a Ponzi scheme that bilked investors out of $1.5 million, with the bulk of the funds promised to finance real estate deals actually being used for lavish personal expenses.

Philadelphia federal prosecutors say Carl Frederic Sealey, 42, and Eric Enge, 44, were top executives of Global Standard Industries Inc. and SEK Industries Inc., and claimed to be running an operation focused on "mid-cap and large-cap ventures," with more than $15...
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