SACRAMENTO (CN) – The Securities and Exchange Commission has accused Equity Investment Management and Training and its principals of defrauding 150 investors through a $40 million Ponzi scheme. Anthony Vassallo and Kenneth Kenitzer attracted investors by claiming to have a proprietary computer program that allowed them to buy and sell stock options and earn monthly gains of 3.5 percent with little risk, the SEC claims in Federal Court.
“These representations were false,” the SEC says. “In fact, in September 2007 Defendants had ceased trading on behalf of EIMT, withdrawn virtually all investor funds from EIMT’s brokerage accounts and misappropriated the funds for their own use.”
Many investors were members of Vassallo’s religious community, the SEC claims.