Lights, Camera, Fraud: Movie Producer Allegedly Defrauds Investors

By Becky Clapes, guest blogger

On November 9, the Securities and Exchange Commission charged a movie producer with defrauding investors via hedge funds, stealing money to live a lavish life. Throughout 2011 and 2012, the SEC alleges that David Bergstein stole millions of dollars from investors, using the stolen funds to buy himself watches, guns, jewelry, and more. Bergstein’s scheme allegedly involved having investors put money into hedge funds, which he would proceed to transfer into unregistered hedge funds and then into his own pocket. In two transactions alone, Bergstein allegedly stole $2.3 million and $3.5 million. The SEC has charged Bergstein with violating the Securities Exchange Act and Rules and various aiding and abetting violations.