BROOKLYN (CN) - Brooklyn-based money manage Philip G. Barry ran a $40 million Ponzi scheme through his unregistered companies, Leverage Group, Leverage Option Management, and North American Financial Services, the SEC claims in Federal Court. The SEC claims Barry "guaranteed" returns of up to 21 percent a year, but spent investors' money on himself and his mail-order pornography business, among other things.
Barry agreed to settle the complaint. He will be ordered not to do such a thing again, and will have to disgorge money and pay a penalty "the amounts of which will be determined at a later date," the SEC said in announcing the settlement.
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