Miami, Florida, October 15, 2009 – Sean Nathan Healy, a Weston resident and self-employed trader, turned himself over to Federal authorities in Harrisburg,
Pennsylvania following his indictment and the issuance of an arrest warrant by the U.S. District Court for the Middle District of Pennsylvania.
Mr. Healy appeared before the District Court, which set his bond and conditions for release pending trial, including electronic monitoring of Mr. Healy’s whereabouts and prohibiting him from traveling outside the Middle District of Pennsylvania, New York and New Jersey, including traveling to Florida where he was residing with his wife and four children. The Court ordered that Mr. Healy undergo psychiatric and drug testing. His arrest follows two complaints filed by the Securities and Exchange Commission (SEC) and the Commodities Futures Trading Commission in mid-July, alleging that he defrauded investors out of more than $15 million in a Ponzi-like scheme.
The SEC’s and CFTC’s original civil complaints and investigation showed that Mr. Healy, a day trader of commodities futures and securities, used stolen funds to support a lavish lifestyle that included $2.4 million dollar home with an additional $2.4 million in renovations; more than ten luxury cars that included three Ferraris, five Lamborghinis, three Porsches, a Bentley, and limousine; $1.4 million in jewelry, a Platinum Membership at the Westin Hills Country Club, and numerous other luxury purchases. All of his assets and certain asset of his wife have been frozen and are in receivership.
Since 2005, Mr. Healy had promised his investors that he would use their funds to trade commodities and securities, but he did not invest any of the money. He allegedly orchestrated this Ponzi scheme that paid a few returns to investors, but in the end, the investors’ funds only supported his extravagant lifestyle.
“Mr. Healey has stolen millions from hard working individuals whose life savings were used for personal gain,” said Melanie Damian, the receiver appointed by the SEC and a partner with the law firm of Damian & Valori LLP. “He exploited their trust, faked documentation and return statements; and then spent their money without regard. Sadly, the main investor defrauded by Healy’s scheme has since filed for bankruptcy. We hope to recover most of his and the other investors’ stolen funds.”
The complaint was filed in the U.S. District Court for the Middle District of Pennsylvania and alleged that Mr. Healy stole most of the funds from Dr. Alfred L. Madeira, a chiropractor from Pennsylvania, and his attorney who also referred numerous other friends and business associates. The complaint also alleges that Mr. Healy provided fake bank and trading records to the investors and to the U.S. attorney’s office for the Middle District of Pennsylvania.
The SEC complaint charged Mr. Healy with violating the antifraud provisions of the federal securities laws and included his wife; Shalese R. Healy and Sand Dollar Investing Partners, a firm controlled by Mr. Healy; as defendants. The SEC’s complaint seeks disgorgement, prejudgment interest and financial penalties against Mr. Healy and recovery of any investor funds he received illegally.