Russo Partnership
The curious part of the SEC's allegations against Frank Russo is the failure to name the "California Company" which Mr. Russo alleged transferred assets to. According to the complaint, Mr. Russo and an friend of this opened this company in 1993. Well, it is fairly straight forward to do a google cache search and find that Mr. Russo was the CFO for a California company, Veritasiti, and that the CEO is Mr. David G. Kinney. Veritasiti also is the registrant of two websites, mediadata.com and familymediaguide.com. Both of these companies do have active websites. There is another interesting fact, or rather strange fact. Mr. Russo has been granted access to approximately 9,000 a month for living expenses and up to $75,000 in legal fees, according to the SEC order.
(At least one newspaper commentator has referred to the 10% return as too good to be true. I don't see this, the alleged representation was a 10% return with no fees, and anything over 10% split 50/50. There doesn't seem to be an allegation of a guaranteed return of 10%.)
But what would I be suspicious of?
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