Posted on 02/06/2003 1:33:39 AM PST by kattracks
A Manhattan investment adviser who regularly bragged about his financial wizardry on TV talk shows was charged yesterday with stealing $12 million from his clients.Todd Eberhard, 39, who recently resigned as chairman of Park South Securities, was arraigned in Manhattan Federal Court on criminal securities and mail fraud charges.
The Securities and Exchange Commission also has filed civil securities fraud charges against Eberhard, who has homes in Manhattan and in Millbrook, Dutchess County.
According to the civil complaint, Long Island winemaker Robert Pellegrini suffered the biggest loss - more than $10 million.
The SEC said Pellegrini, 69, was an unsophisticated investor who met Eberhard in 1999. Pellegrini's personal trainer recommended that the winemaker invest with Eberhard.
Pellegrini gave Eberhard $12 million to invest. By the end of last year, the account was down to $1.6 million, according to the commission.
Monthly lies
Eberhard showed Pellegrini monthly statements that lied about the amount of money in the account, the SEC's complaint said.
Federal prosecutors said the criminal complaint also charges Eberhard with misappropriating clients' funds by "churning" their accounts to generate excessive commissions.
The complaint said Eberhard used some of the stolen money to pay off other clients who had filed complaints against him.
Last October, Eberhard became the subject of a National Association of Securities Dealers disciplinary proceeding.
Eberhard has made more than 600 appearances on CNN and CNNfn financial news programs.
He gets around allright. -Tom
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