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Old 01-15-2015, 03:23 PM
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Default (BLACK) Money manager sent to prison for stealing $2.4M from investors

http://nypost.com/2015/01/14/manager...ive-lifestyle/

Manager scammed $2M from clients for expensive lifestyle
By Rebecca Rosenberg
January 14, 2015 | 4:42pm


Steven Canady is seen at his arraignment.
Photo: Steven Hirsch


A greedy New York money manager allegedly stole more than $2 million from his clients to fund a lavish lifestyle, prosecutors said at his arraignment Wednesday in Manhattan Supreme Court.

Alliance Warburg Capital CEO Steven Canady, who on his blog claims to be a Cambridge-educated doctor, allegedly ripped off three companies by promising to fund their business ventures after they paid a “fully refundable” fee, prosecutors said.

Canady, 42, never ponied up cash and instead spent the fees on personal expenses like dining, travel and rent for a luxury Midtown high-rise apartment.

The alleged scam occurred between May 2010 and June 2012, authorities said.

“Through his position, he ran what was essentially a multimillion-dollar Ponzi scheme,” said Assistant District Attorney Bryan Serino in court Wednesday.

Canady, who also claims on his blog to have a Ph.D. in neuroscience from the storied university, swindled a fourth victim out of $150,000, prosecutors said.

He promised a large return within 30 days on the sizable investment but never paid up and used the cash to pay back another victim, authorities said.

Canady relocated from Atlanta to Manhattan a few years ago and rented a $6,500-a-month, two-bedroom, two-bathroom apartment at 350 W. 42nd St., *records show.

The 1,300-square-foot pad, allegedly paid for with stolen cash, has panoramic views of the Empire State Building and the Statue of Liberty.

Canady, wearing a slick black suit, pleaded not guilty Wednesday to charges of grand larceny, scheme to defraud and possession of stolen property.

Manhattan Supreme Court Justice Jill Konviser set bail at $1 million. Prosecutors said they believe there are more victims.

The brainiac investor also claims to have a master’s degree in chemistry from Emory University.

The accused con artist has a felony conviction for similar conduct in Georgia, said law-enforcement sources.

Canady has also been investigated by banking and securities authorities in other states, records show.

“This investment manager is charged with pocketing what he falsely promised were fully refundable fees, using them to fund his lavish lifestyle or pay off earlier victims,” said Manhattan District Attorney Cyrus Vance Jr.

“We will not allow individuals to profit from would-be investors by weaving webs of deceit.”
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Old 10-18-2017, 06:11 PM
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Default Re: Manager scammed $2M from clients for expensive lifestyle

http://nypost.com/2017/10/18/money-m...rom-investors/

Money manager sent to prison for stealing $2.4M from investors
By Rebecca Rosenberg
October 18, 2017 | 3:31pm


Steven Hirsch


A Manhattan money manager convicted of stealing more than $2.4 million from investors to fund an extravagant lifestyle — including a penthouse apartment and a porn habit — was sentenced to up to 18 years in prison.

Prosecutors ​Tuesday ​described Steven Canady as a huckster whose company, Alliance Warburg Capital, was nothing more than a front used to swindle at least seven victims — including a fashion designer.

Assistant District Attorney Adam Maltz said the scheme funded a $25,000-a-month apartment at the Mandarin Oriental hotel, meals at high-end restaurants and an expensive pornography habit.

“The defendant is a con man and nothing more,” said Maltz, arguing in Manhattan Supreme Court for a prison term of up to 20 years.

Canady, who falsely claimed to be a Cambridge-educated doctor , told investors he’d bankroll their business ventures in exchange for an upfront fee.

If he was unable to secure loans for their projects, the fee was supposed to be refunded. But Canady simply pocketed the dough.

Fashion designer Hernan Lander testified at trial that he handed Canady $25,000 as an upfront fee in exchange for a loan to put on his show at Mercedes-Benz Fashion Week in 2014. But Canady failed to finance the project and took off with the cash.

Although he was convicted in May of a slew of raps, including grand larceny, scheme to defraud and forgery, he insisted these were simply failed business ventures.

“I’m not a criminal,” he said.

Justice Daniel Conviser called the evidence against him “absolutely overwhelming” and accused him of “continuing to attempt to defraud this court even today” with his protestations of innocence.

Conviser handed down a sentence range of six to 18 years in prison, making him eligible for parole in six years.
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