A federal judge has sentenced a Miami stockbroker to 10 years in prison for a massive fraud that lured wealthy investors with an aura of exclusivity and false promises of an 80 to 90 percent return on investments.
U.S. District Court Judge George Carr imposed the maximum 10-year sentence and $10,000 fine on Dennis Greenman, 36, the former senior vice president of Barclay Financial Corp., a broker dealer firm in North Miami.
Rejecting pleas for leniency by Greenman's lawyers, Carr also ordered him to prison immediately, citing the "enormity" of what he had done and noting that he had received letters from investors whose lives he said had been ruined.
According to investigators, Greenman operated an invitation-only investment company in which the minimum investment in some cases was $100,000 and in which investors included millionaire business executives, doctors and lawyers.
Investors received counterfeit computer printouts from reputable brokerage firms showing phony earnings when the fund actually was losing money. Investors were told that if they removed their funds, they were out for good.
Investors have claimed fraud losses of $50 million so far, according to an attorney for the court-appointed trustee, Hugo Black.
Approximately $21 million has been recovered, and $8.3 million has been distributed so far to investors whose claims have been audited and verified.