MANHATTAN (CN) – Three men defrauded securities firms of $1.2 million through kickbacks and bogus “finder’s fees,” the SEC says in Federal Court. Charles Peterein directed the payments to Melvyn and Eric Nathanson and their shell company, Ganis, while Peterein was the head stock loan trader at PAX Clearing Corp. in Chicago, the SEC says.
The Nathansons allegedly ran the scam while running their now-defunct company, SME Consultants.
Melvyn Nathanson, 70, lives in Lady Lake, Fla., where he runs MAG Consultants, which has a consulting agreement with Newedge USA of New York City, the SEC says.
Eric Nathanson, 43, of Lady Lake, is a stock loan trader with Newedge.
Peterein, 59, of Evergreen Park, Ill., is a stock loan trader with Sallerson-Troob of Chicago. He still controls Ganis, according to the SEC complaint.