By Lawrence Delevingne
BOSTON (Reuters) – The U.S. Justice Department on Tuesday charged a Florida-based wealth adviser, a convicted felon using the name Dr. Terrence Cash, with fraudulently inducing individuals to invest in his “Greenlight”-branded wealth management businesses.
The U.S. Securities and Exchange Commission on Tuesday announced parallel civil charges https://www.sec.gov/litigation/complaints/2020/comp24954.pdf against the suspect, whose real name is Terrence Chalk, and his Greenlight group of businesses for fraudulent securities offerings and a “Ponzi-like scheme.”
Chalk, 58, did not immediately respond to requests for comment.
The firm has no connection to David Einhorn’s New York-based hedge fund firm, Greenlight Capital Inc.
According to charges https://www.justice.gov/usao-sdny/pr/chairman-wealth-management-business-charged-securities-fraud unveiled by the Department of Justice’s Manhattan office, Chalk used the “Cash” name to hide a decade-old conviction for fraud-related offenses in New York.
He was able to solicit more than $4 million in investments but, according to the complaint, spent most of the money on himself, including $70,000 paid to a luxury car dealer and $17,000 to an NBA team for season tickets.
Chalk’s website for Greenlight Advantage group states that “Dr. Cash” and his companies offer “transformative solutions that are non-conventional and counter-intuitive, that are based on the hidden secrets of the wealthy elite.”
(Reporting by Lawrence Delevingne in Boston; Editing by Tom Brown)
