Happy Halloween and to celebrate here’s the final installment of our 3-part series of the 55 Most Out of Control Stock Traders. We figured now is as good a time as any to scare the crap out of you with these recounted tales of greed and woe. Part 3 counts down numbers 43 through 55 on our list of the top 55.
(Definitely not the correct William Radclyffe, but more than likely, one of his pompous ancestors. Trust us on this one, we dabbled in the study of Punnett Squares in college for a few semesters.)
William Radclyffe has been accused of numerous crimes including theft and creating false statements to clients. He stole from and defrauded his clients, many of which were friends of his. He used this money to fund his daily expenses, his own investments and school fees.
Who: William Radclyffe
Banked for: Banked independently
What happened: He created false and misleading statements to his clients and profited from illegal collective investment schemes that he was operating.
Damage done: More than £350,000
Currently serving: 15 months in prison.
44. Rene Rivkin
Rene Rivkin was an Australian investor, entrepreneur, investment advisor and stockbroker, as well as a multi-millionaire until he was convicted for insider trading.
Who: Rene Rivkin
Banked for: Leumi Bank
What happened: He was found guilty of insider trading after having purchased 50,000 Qantas shares after being made aware of information in relation to an impending merger of Qantas and Impulse Airlines. He was charged with using confidential and market-sensitive information, having purchased – on behalf of Rivkin Investments - the 50,000 Qantas shares on April 24, 2001, just hours after speaking to the executive chairman of Impulse, Gerry McGowan. The trade resulted in a profit of $2,664.94.
Damage done: AU $2,664.94
Served: only 9 months in prison before his suicide death in 2005.
45. Upul Anthony
(Not sure if this is really the same Upul Anthony, but he is listed as a member of the ‘Australia’ network on Facebook. Could be right? I can’t explain the Stuart Little 2 imagery but maybe he was a big fan of the movie/book before he went to jail 4 years ago? Seems like an odd coincidence with reference to the photo work on our #38 entry on the list, Stuart E. Winkler, from yesterday, right?)
Upul Anthony is a stockbroker in Sydney that has been sentenced to four and a half years in jail after misappropriating more than $16 million dollars in funds. Over the span of 20 months he improperly siphoned more than $16 million dollars from 74 transactions.
Who: Upul Anthony
Traded for: Cogent Securities
What happened: Upul Anthony obtained financial advantage by deception, as he misappropriated more than AU $16 million in funds over the span of 20 months. According to the Sydney Morning Herald, "What started out as a $1.6 million favour to a friend – to capitalise a baby telco and make a high tech profit – ended with Anthony manipulating the market as he threw millions after millions into the company and the market, trying to recover Cogent’s stolen money. His gamble, at the beginning of 2001, started a year after the tech market tumble."
Damage done: AU $16.1 million
Still serving: 4.5 years in prison
Carlos A. Shibata, who was a registered investment advisor in the Miami Dade County office for Smith Barney diverted $290,471 from a client’s securities brokerage account to an account that he controlled. He was indicted for two different counts of wire fraud because several months later he diverted an additional $150,000 from the same account so that he could make a partial payment on a 2004 Lamborghini.
Who: Carlos A. Shibata
Banked for: Smith Barney
What happened: Two counts of wire fraud for diverting funds from client accounts into personal accounts.
Damage done: US $400,000
Served: 33 months in prison, and 2 years of supervised release.
47. Paul Eustace
Paul Eustace worked for a hedge fund firm known as Philadelphia Alternative Asset Management where he produced fictitious accounts that allowed him to pretend he was earning for clients when he was actually only losing their money. All told, Paul Eustace is responsible for more than $200 million in damages.
Who: Paul Eustace
Worked for: Philadelphia Alternative Asset Management
What happened: Eustace defrauded his clients. He produced fictitious accounts purporting to show that he was making money for clients when he was actually losing it instead.
Damage done: $200 million or £96 million dollars.
Currently serving: Rather than serving jail time, Paul Eustace had to pay a $276 million dollar fine. Good deal, right? Although it seems he’s chillin in Canada these days.
48 & 49. Samuel Israel III and Daniel Marino
Bayou Management, the principals of this fund, Daniel Marino and Samuel Israel III plead guilty to defrauding investors of $450 million dollars or £262 million by using fictitious auditors in 2005. This guy is known as the ‘evil Dan Marino’. Not to be confused with the lovable Hall Of Fame quarterback for the Miami Dolphins and TV analyst. And we all remember slimy Sam Israel from back when he ‘on the run’ in June. He even made an appearance on our 5 People Who Also Deserve A Punch In The Face list. Guy gets around.
Who: Samuel Israel III and Daniel Marino
Invested for: Bayou Management
What happened: They defrauded investors in part by using fictitious auditors.
Damage done: £262 million (US $450 million)
Currently serving: Both gentlemen are currently serving 20 years in prison. Finally.
(Won Sok Lee, second from left, and John Bae Kim, second from right dine with some big shots at the KL Group)
Although Won Sok Lee seems to be the ringleader in this operation, the KL Financial Group scandal appears to have been perpetrated by a trio of brothers, including Won Sok Lee, John Bae Kim and Yung Bae Kim. A total of $213 million dollars was either lost or stolen, and only $4.6 million dollars has been recovered. No one has yet been indicted, but charges have been filed.
Who: Won Sok Lee, John Kim, Yung Bae Kim
Invested for: KL Financial Group
What happened: Securities fraud in a massive scandal with KL Financial Group.
Damage done: $213 million from investors was either lost or stolen.
Charges: Charges have been filed but no one has yet been indicted.
54 & 55. Mother and Son Hedge Fund Scam
(Hakan- right, mother Ayferafet- center)
Sometimes fraud becomes a family affair. Ayferafet Yalincak, aged 51, and her son, Hakan Yalincak who is 22, pleaded guilty to conspiracy to commit wire fraud. This charge could send Ayferafet to prison for as many as five years.
Who: Ayferafet Yalincak and her son Hakan Yalincak.
Invested for: Investing was done independently.
What happened: Conspiracy to commit wire fraud. They squandered their investments on personal items. According the NYT, "Ms. Yalincak told the court that she attended meetings with investors and allowed her son to present her as a member of an extremely wealthy Turkish family who was going to invest millions in his hedge fund."
Damage done: More than $1.25 million dollars in damages. And NYU had to embarrassingly rename a lecture hall after his conviction.
Currently serving: Ayferafet faces as many as five years in prison and Hakan faces up to 50 years in prison.