SEC: WGMD/Rehoboth Beach's New (And Now Ex-) Afternoon Host Defrauded Investors
June 8, 2015 at 2:34 PM (PT)
As RESORT BROADCASTING News-Talk WGMD/REHOBOTH BEACH, DE debuted retired hedge fund manager TODD SCHOENBERGER as its new 3-6p (ET) host last week, SCHOENBERGER was sanctioned by the Securities and Exchange Commission for admitted fraud. SCHOENBERGER has apparently exited the station after a week, with DUKE BROOKS handling afternoons for now.
The WILMINGTON (DE) NEWS-JOURNAL reports that SCHOENBERGER, who has appeared as a financial expert on cable news and business networks, admitted to convincing four investors to give him $130,000 by telling them he would invest the money in a $65 million hedge fund, but his funds did not have any assets other than the money he took from the investors and the SEC says he spent some of the money on a new house and his living expenses.
The SEC announced that SCHOENBERGER agreed to a settlement under which he must pay $65,000 plus $4,349.87 in interest back to the investors and will be barred from "barred from association with any broker, dealer, investment adviser, municipal securities dealer, municipal advisor, transfer agent, or nationally recognized statistical rating organization; barred from acting as an officer or director of any issuer that has a class of securities registered pursuant to Section 12 of the Exchange Act [15 U.S.C. § 78l] or that is required to file reports pursuant to Section 15(d) of the Exchange Act [15 U.S.C. § 78o(d)]; and prohibited from serving or acting as an employee, officer, director, member of an advisory board, investment adviser or depositor of, or principal underwriter for, a registered investment company or affiliated person of such investment adviser, depositor, or principal underwriter."
The station did not comment to the NEWS-JOURNAL on the SEC settlement other than posting a news item on its website saying, "The Securities and Exchange Commission late yesterday released a report that certain practices of LANDCOLT CAPITAL GP, LLC owned by TODD SCHOENBERGER were found to be inconsistent with certain of its guidelines. The issues in question occurred in early 2013. No fines were levied. TODD SCHOENBERGER is an afternoon host of WGMD radio." But the SEC order notes that the remedy was arrived upon due to SCHOENBERGER's "inability to pay a civil penalty."