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Anthony "@Hedgieguy" Davian Pleads Guilty To Fraud

Tyler Durden's picture




 

Last August we presented the story of a very sad and misguided individual, one Athony Davian, who was then the first person charged with running a ponzi scheme off twitter. Specifically, we said:

Once upon a time there was a Twitter-based, pump-and-dumping daytrading bucket shop posing as a "successful hedge fund manager" also known as Davian Letter/Davian Capital Advisors run by an Ohio gentleman known as Anthony Davian, which for reasons unknown even managed to run outside capital (somehow raking up to $1.5 million in idiot AUM, mostly courtesy of his very aggressive self promotion on Twitter using the @hedgieguy handle), and which didn't like Zero Hedge much.

(but that's ok because the feeling was mutual - we had advised the SEC in late 2009 that the Davian operation was nothing but a ponzi scheme).

 

A few years later, said outside capital is gone (with losses that could have been prevented had the SEC moved earlier) and moments ago, following a four year delay since our notice, the SEC has finally acted and charged Anthony Davian with fraud.

Today, the sad story of Anthony "@Hedgieguy" Davian...

... comes to an end with his guilty plea to charges of fraud.

From Cleveland.com:

A Copley man today pleaded guilty to charges he operated a fraudulent investment scheme that caused his investors to lose about $1.8 million.

 

Anthony Davian, 34, was charged with 14 counts of securities fraud, mail fraud, wire fraud, and money laundering. He is scheduled to be sentenced July 2.

 

“This defendant deceived clients to line his own pockets,” said U.S. Attorney Steven Dettelbach. “We will continue to aggressively pursue cases in which investors are cheated out of their savings.”

 

Davian grew up in Parma and graduated from Holy Name High School in 1998. He attended the University of Akron but did not

graduate.

 

According to charging documents, from 2008 to 2013, Davian used his hedge fund, Davian Capital Advisers, LLC, to promote and sell securities to at least 20 investors across several states, resulting in $1.8 million in overall investor loss.

 

Davian purported to sell securities in the form of shares in the various funds he created and controlled, including Davian Capital, Rubber City Gravity, Rubber City Pure Alpha, Cleveland Precious Metals Fund, and others. 

 

Instead, he used the investors’ monies to pay back earlier investors, to enrich himself, and to pay off personal expenses, such as the purchase of an Audi Q7 Prestige, and the construction of a luxury home, according to the information.

 

The investigation revealed that Davian cajoled investors’ into giving him hundreds of thousands of dollars by claiming to manage hundreds of millions of dollars to make himself appear more sophisticated than he really was, and by falsifying client account statements, according to the information.

 

Last year, the Securities and Exchange Commission charged Davian and his Richfield-based hedge fund company with defrauding investors. The agency’s complaint characterized Davian Capital as “nothing more than Davian’s personal piggy bank,” and called Davian’s promise of returns on investments "figments of Davian's imagination."

One down. Many more to come.

 

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Tue, 03/25/2014 - 16:37 | 4591608 Manthong
Manthong's picture

"We will continue to aggressively pursue cases.."

lmfao

Tue, 03/25/2014 - 16:42 | 4591633 El Vaquero
El Vaquero's picture

Yeah, but those cases will be small fry who aren't insiders.

Tue, 03/25/2014 - 16:48 | 4591662 Rentier88
Rentier88's picture

Davian, Ju Got Owned...!

Tue, 03/25/2014 - 16:53 | 4591676 toys for tits
toys for tits's picture

Davian was small enough to fail ... and he did.

Tue, 03/25/2014 - 17:05 | 4591718 Gaius Frakkin' ...
Gaius Frakkin' Baltar's picture

Still waiting for the biggest Ponzi schemers at the Federal Reserve to plead guilty.

Tue, 03/25/2014 - 17:44 | 4591851 CrashisOptimistic
CrashisOptimistic's picture

Note that often a guilty plea is not an admission of guilt.  Rather, it may be an evaluation of lowest cost.

Wed, 03/26/2014 - 01:38 | 4592940 Fish Gone Bad
Fish Gone Bad's picture

Davian was small enough

That guy has a weight problem, and now he's got a police problem as well.  One has to wonder if he ever thought he was ever doing anything wrong...

Tue, 03/25/2014 - 16:50 | 4591668 So Close
So Close's picture

1.8M?   He wasn't even a good rip off artist.

Tue, 03/25/2014 - 18:18 | 4591951 aVileRat
aVileRat's picture

Correct, but he did a very good job at confusing retail investors and also using twitter to skirt market report/investment letter SEC rules.

Tyler1 did a good amount of sleuting to nail this one, so it's a good update and ending to the saga.

 

Tue, 03/25/2014 - 22:46 | 4592710 StychoKiller
StychoKiller's picture

Wait a sec, ZH is a stawk ticker?  On which exchange?

Tue, 03/25/2014 - 17:25 | 4591786 Freddie
Freddie's picture

...the first person charged with running a ponzi scheme off twitter.

LOL!  Irony.  Twitter ***IS*** a f**king PONZI scheme.   Who will protect the people who own the stock?

Tue, 03/25/2014 - 17:38 | 4591830 lordylord
lordylord's picture

Twitter ***IS*** a f**king PONZI scheme.

 

Ponzi inception.  We must go deeper.

Tue, 03/25/2014 - 17:46 | 4591871 The Gooch
The Gooch's picture

Davian: What are you in for?"

Cellmate: "Double homocide. You?"

Davian: "I ran a ponzi on twitter."

Cellmate: "Fuck you say?"

(This is granted .gov does not offer him a job.)

If this is how a Corzine starts, I say nip it in the bud.

 

Tue, 03/25/2014 - 18:09 | 4591926 diogeneslaertius
diogeneslaertius's picture

this is the China model, publicly burn low lvl nobodies while allowing billions in fraud to ram its dick up the people's ass daily.

Tue, 03/25/2014 - 16:49 | 4591667 McMolotov
McMolotov's picture

Free Jon Corzine!

Tue, 03/25/2014 - 17:02 | 4591703 Troll Magnet
Troll Magnet's picture

Honorable Jon Corzine.  Honorable!

Tue, 03/25/2014 - 17:23 | 4591778 Freddie
Freddie's picture

Free John Corzine!   Attica! Attica!

Tue, 03/25/2014 - 23:01 | 4592648 JuliaS
JuliaS's picture

Who does he think he is? Goldman Satchels?

Tue, 03/25/2014 - 16:37 | 4591610 john39
john39's picture

silly fool... ripping off clients is a perk reserved for those in the club only.

Tue, 03/25/2014 - 16:38 | 4591612 ebworthen
ebworthen's picture

Another guppy caught in the shallows while the Great White Sharks of Wall Street eat surfers and swimmers unfettered.

Glad they finally nabbed the douche but too late for the suckers that fell for his scheme it would seem.

Tue, 03/25/2014 - 16:43 | 4591635 El Vaquero
El Vaquero's picture

Yup.  Let me know when they go after Jamie or Lloyd. 

Tue, 03/25/2014 - 16:43 | 4591639 prains
prains's picture

SHARKNADO !!!!!'

errrr, maybe not

Tue, 03/25/2014 - 16:39 | 4591614 The Most Intere...
The Most Interesting Frog in the World's picture

Sorry Stupid!  If you gave your $ to this guy, you deserve to lose it!

Tue, 03/25/2014 - 16:40 | 4591617 Digital Disasters
Digital Disasters's picture

"Successful hedge fund manager" funny

Tue, 03/25/2014 - 16:40 | 4591619 camaro68ss
camaro68ss's picture

his timeline went to zero faster then most.

Tue, 03/25/2014 - 16:40 | 4591620 One And Only
One And Only's picture

Greetings,

I am a famous and very successful hedge fund manager based out of Nigeria. For an excellent investment opportunity please send funds to 1FfmbHfnpaZjKFvyi1okTjJJusN455paPH.

Tue, 03/25/2014 - 16:49 | 4591666 Cacete de Ouro
Cacete de Ouro's picture

You must know my cousin, Rodney Yoruba, High Commissioner in Lagos. We have recently received a large inheritance from our recently passed uncle in London, but the will stipulates that the transfer must be secured by a local financial institution in good standing. We would be most greatful if you could facilitate us by supplying swift number and international correspondent account.

Tue, 03/25/2014 - 17:28 | 4591795 Freddie
Freddie's picture

...the will stipulates that the transfer must be secured by a local financial institution in good standing.

LOL! Good standing aka reputation.  You better not have them wire it to (JP Morgan) Chase as they will rehypothicate your windfall from Nigeria.

Tue, 03/25/2014 - 23:11 | 4592757 are we there yet
are we there yet's picture

I think I got an email from your nigerian princess sister who wanted to give me her virginity and millions of dollars she secretly had from her dead tyrant father.

Wed, 03/26/2014 - 04:27 | 4593058 Pseudonymous
Pseudonymous's picture

You forgot to add:

Disclosure: Any funds transferred to the aforementioned Bitcoin address become the possession of an agency of a criminal organization involved in murder, theft, fraud, genocide, etc. Investors assume full responsibility for any funds invested or otherwise transferred to the aforementioned Bitcoin address and for everything the subsequent use of the funds by the organization might lead to and shall bear unlimited liability therewith. The records of any transactions shall be kept, in an undeniable fashion, for all to see, at least until the end of time, or until all copies of the Bitcoin blockchain are irrecoverably lost, whichever comes first.

Tue, 03/25/2014 - 16:41 | 4591625 Cacete de Ouro
Cacete de Ouro's picture

So is this what a bullion bank Unallocated Gold scam looks like?

After all, unallocated gold is a "Figment of the Imagination"

Tue, 03/25/2014 - 16:42 | 4591630 ZombieHuntclub
ZombieHuntclub's picture

A fool and his money are lucky they got together in the first place.

Tue, 03/25/2014 - 16:44 | 4591644 Big Ben
Big Ben's picture

When he gets out, he can apply to be chief of the Social Security Administration.

Tue, 03/25/2014 - 16:54 | 4591682 pound the vix
pound the vix's picture

Not the Lockbox

Tue, 03/25/2014 - 16:53 | 4591680 pound the vix
pound the vix's picture

Sad thing is if he just put the money in the SPY ETF he would be a billionaire!!!!

Tue, 03/25/2014 - 16:54 | 4591684 Sabibaby
Sabibaby's picture

This is still small time but at least he got busted. When do we get to the big guys?

Tue, 03/25/2014 - 18:24 | 4591967 cynicalskeptic
cynicalskeptic's picture

What do you not understand about 'Too Big to Fail/Jail?'

Clearly you don't get the whole point of Crony Capitalism.

Tue, 03/25/2014 - 17:02 | 4591706 Dr. Engali
Dr. Engali's picture

People are stupid. Who the hell gives their money to a person who promotes himself as "a successful hedge fund manager" managing a portfolio called "Rubber City Gravity"? Idiots....

Tue, 03/25/2014 - 17:30 | 4591801 Big Corked Boots
Big Corked Boots's picture

Maybe his investors were expecting a bounce-back?

Tue, 03/25/2014 - 17:05 | 4591719 Duc888
Duc888's picture

 

 

1.8M.

 

Piker.

Tue, 03/25/2014 - 17:20 | 4591774 infinity8
infinity8's picture

I have never "rated" an article on ZH because, well, who the fuck am I? Not cool enough to have founded ZH. But, thumbs up, 5.

Tue, 03/25/2014 - 17:28 | 4591793 Iam Yue2
Iam Yue2's picture

Hedge Fund.....more like privet leaf.

Tue, 03/25/2014 - 18:28 | 4591992 TaperProof
TaperProof's picture

The guy bought a station wagon, come on... that's an insult to ponzi scheme operators world wide.

Tue, 03/25/2014 - 18:39 | 4592026 Clowns on Acid
Clowns on Acid's picture

Just a young Jim Cramer... who got caught

Tue, 03/25/2014 - 19:06 | 4592092 itstippy
itstippy's picture

Mrs. Tippy has recently inherited a very sizable amount of money, a situation we've never dealt with before.  We both greatly admire the lifestyles depicted on "The Real Housewives of Camden, NJ".  Can anyone recommend a modern, successful, Twitter-based hedge fund manager who can help us realize our financial dreams?

Tue, 03/25/2014 - 19:31 | 4592199 deerhunter
deerhunter's picture

needing to do a personal ponzi investigation into whether or not the Snorg Tee models are really that good looking in real life,  any willing investors can send funds tooo my personal banking account number,,,,,,,,,

Tue, 03/25/2014 - 22:44 | 4592704 pachanguero
pachanguero's picture

Those aps are going to bust his white ass for breakfast!

Tue, 03/25/2014 - 23:03 | 4592744 AndrewJacksonsGhost
AndrewJacksonsGhost's picture

Glad they got this guy, if he wouldn't have been caught, he might have stole as much as Jon Corzine in about a thousand years.

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