Jun 19, 2008 8:13 pm US/Eastern
NYC Stock Swindle Targeted Elderly Victims
Brooklyn Man Accused Of Bilking More Than $500,000; Faces Up To 45 Years Behind Bars
NEW YORK (CBS) ―
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A Brooklyn man is charged with fleecing six investors -- most of them elderly -- out of $540,000 in a stock scam.
AP
A Brooklyn man was behind bars Thursday night, accused of taking advantage of the elderly and their desire to retire comfortably.
The scheme involved phone calls and fake names. It came to a head when one of the unsuspecting investors complained to authorities about never seeing any financial reward.
Moments after his arrest, Adam Heng told police he felt guilty about systematically robbing retirees.
"I'm very sorry," Heng said.
When asked what he's sorry for, the accused stock scammer said, "All the things that I've done."
Prosecutors say the disgraced stockbroker wiped out at least a half dozen seniors of more than $500,000 -- their money never going to Wall Street but instead financing Heng's lavish lifestyle that included his home.
"It got me in bad shape," investment scam victim James Gilbert said.
Gilbert, a 76-year-old from Minnesota, lost more than $300,000.
"I'm feeling pretty bad," Gilbert said. "You know you're at the age you can't start over. Now I just have to do the best I can."
Investigators say the licensed broker used client lists from his previous Wall Street job and cold-called all over the country.
Then, it is alleged he played a name game, calling his fake company Pershing Capital LLC, in a deliberate attempt to confuse it with the actual firm of Pershing LLC.
"The investors, thinking that they were legitimately investing with a legitimate company, turned all their money over to him," said Michael Vecchione of the King's County District Attorney's Office.
Authorities say that to avoid getting scammed, make sure your broker is registered with the Securities and Exchange Commission, don't be bullied into buying stock and never pay a broker directly. Instead, pay the company.
"The most important thing is to ask questions. It's your money. It's your life savings. Ask questions," prosecutor Dennis Ring said.
Gilbert, a veteran of the Korean War, wishes he'd done more of that but knows he's been through worse.
"I'm not a big spender (laughs)," he said. "I just have to get by as cheap as I can right now."
Also impacted are Heng's two children and fiancé, who told CBS 2 HD late Thursday she had no idea what was going or what she's going to do now.
Heng has been indicted on grand larceny and money laundering charges. If convicted, he faces a maximum of 45 years in jail. Prosecutors also believe there are more victims out there.
(© MMIX, CBS Broadcasting Inc. All Rights Reserved.)
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