UNITED STATES DISTRICT COURT
FOR THE NORTHERN DISTRICT OF ILLINOIS
._~
E_AS_T_ERN_DIVISION
REeEl VED
UNITED STATES SECURITIES
JUN 172010
AND EXCHANGE COMMISSION,
MICHAEL W. DOBBINS
Plaintiff,
CLERK, U.S. DIS~~ICT COURt
JuiJGE LEINENWEE1ln
.
v.
MAGISTRATE JUDGE DENLC"
DANIEL SPITZER,
DRASEENA FUNDS GROUP, CORP.,
KENZIE ]fINANCIAL MANAGEMENT, INC., :
KENZIE SERVICES LLC,
: CIVIL ACTION
ANEESARD MANAGEMENT LLC,
: FILE NO.
NERIUM MANAGEMENT CO.,
~v; U·r¥4 (1
JL' 'V
DN MANAGEMENT CO. LLC,
ARROW FUND, LLC,
ARROW FUND II, LLC,
CONSERVIUM FUND, LLC,
NERIUM CURRENCY FUND, LP,
SENIOR STRENGTH Q FUND, LLC,
SSECURITY FUND, LLC,
THREE OAKS ADVANCED FUND, LLC,
THREE OAKS CURRENCY FUND, LP,
THREE OAKS FUND, LP,
THREE OAKS FUND 25, LLC,
THREE OAKS SENIOR STRENGTH FUND,
LLC,
USFIRST FUND, LLC,
Defendants.
FILED UNDER SEAL
COMPLAINT
Plaintiff United States Securities and Exchange Commission ("Commission")
alleges as follows:
NATURE OF THE ACTION
1.
The Commission brings this emergency law enforcement action to halt a
$105 million fraudulent Ponzi scheme being perpetrated by Daniel Spitzer ("Spitzer")
and the Defendarit entities that he controls and to freeze any remaining assets of the
Defendants to prevent any further dissipation of those assets, amongst other relief.
2.
From at least 2004 to the present, Spitzer, personally and through the
Defendant entities, which he controls, has been running a fraudulent scheme in which he
has raised $105,875,029 and has approximately 400 investors. Spitzer, individually and
through the Defendant entities and various sales agents, represented to these investors
that their money would be invested in investment funds that, in tum, would be invested
primarily in foreign currency trading. They all further represented to investors that
Spitzer's investment funds had not lost money and had profitable historical returns,
including one year with an annual return of 184.15%.
3.
In reality, Spitzer used $71,886,926 of the in