William J. Wells, an investment manager for a New Jersey firm named Promitor Capital Management LLC, has been charged by the Securities and Exchange Commission (SEC) with fraud. According to the SEC, Wells operated a Ponzi-like scheme. Wells allegedly told investors he would invest their money into specific stocks, but then actually invested their monies in different stocks, some of which were highly speculative. When the stocks did not perform well, Wells created false statements to hide the losses. Wells was able to further conceal the losses by raising money from new investors to pay the established investors. According to the SEC, Wells misappropriated about $1.1 million from all of the investors, most of which has been lost.
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