After graduating from John Jay, Scronic received a bachelor’s degree from Stanford University and a master’s from the University of Chicago. He worked for Morgan Stanley from August 1998 to October 2005, according to the SEC, which is suing him over the alleged fraud.
Scronic began scamming clients from day one, according to prosecutors. Beginning in April 2010, he reported positive returns in every quarter but one, though he actually lost money in every quarter except the first, the U.S. said. The scheme collapsed when at least four investors tried to redeem $1.5 million beginning in June, they said.
“Scronic made a variety of misleading excuses” to an investor, the SEC alleged. After claiming it would take two weeks to process a redemption request, he ignored follow-up emails and then said his email had changed, the agency said.
The case is U.S. v. Scronic, 18-cr-00043, U.S. District Court, Southern District of New York (White Plains).
This article was provided by Bloomberg News.