Platinum Partners' Founder and CIO Mark Nordlicht and Co-CIO David Levy Convicted of Defrauding Bond
Platinum Partners’ Founder and CIO Mark Nordlicht and Co-CIO David Levy Convicted of Defrauding Bondholders in a Multi-Million Dollar Scheme
Defendants Orchestrated a Rigged Vote Relating to $150 Million in Bonds
Mark Nordlicht, the founder and Chief Investment Officer of Platinum Partners L.P. (Platinum), and David Levy, the co-Chief Investment Officer of Platinum, were convicted today by a federal jury in the Eastern District of New York of securities fraud, securities fraud conspiracy and wire fraud conspiracy for their roles in defrauding the bondholders of Black Elk Energy (Black Elk), an oil company that was one of Platinum’s largest assets, by rigging a consent solicitation vote. The verdict followed a two-month trial before United States District Judge Brian M. Cogan.
Richard P. Donoghue, United States Attorney for the Eastern District of New York; William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI); and Philip Bartlett, Inspector-in-Charge, United States Postal Inspection Service, New York Division (USPIS), announced the verdict.
“With today’s verdict, Nordlicht and Levy have been held accountable for deceiving bondholders to gain control of the remaining assets of a failing oil company to line their own pockets and those of close family and friends,” stated United States Attorney Donoghue. “This Office and our law enforcement partners remain unwavering in our commitment to unraveling complex fraud schemes and bringing perpetrators, like the defendants, to justice.” Mr. Donoghue thanked the Securities and Exchange Commission, New York Regional Office (SEC), for their significant cooperation and assistance during the investigation.
“The victims of this scheme paid the price for the crimes committed by Nordlicht and Levy,” stated FBI Assistant Director-in-Charge Sweeney. “Today, the tables have turned. The FBI is committed to working with our law enforcement partners to ensure this type of behavior ceases to exist, and that investors can continue to place their faith in our financial markets.”
Read more: https://www.justice.gov/usao-edny/pr/platinum-partners-founder-and-cio-mark-nordlicht-and-co-cio-david-levy-convicted