Vandersnow was allegedly involved in mis-marking the bonds of China Medical Technologies Inc., a diagnostics manufacturer, according to court papers. China Med declared bankruptcy in 2012 amid the disappearance of its chief executive and allegations that the company’s assets were looted. Its bonds had recently traded at 16 cents on the dollar. But the fund allegedly obtained quotes from Vandersnow and others that enabled it to carry them on its books at 38 cents on the dollar, allowing the fund to overstate their value by more than $9 million, according to court records.
Vandersnow is now president of a real estate lending firm and owns an indoor sports facility in Paramus, New Jersey, according to his LinkedIn profile.
Another broker who allegedly participated in the scheme, identified in court papers as “Broker-2,” was Jonathan Brook, director of institutional credit sales at Janney Montgomery Scott LLC, according to people familiar with the case. Brook, 44, died of a heart attack while driving to his home in Rye, New York, last year.
His wife said she was unaware of her husband’s role in the case and declined to comment further. A spokeswoman for the brokerage firm declined to comment.