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United States Attorney's Office News Release

 

STOCKBROKERS CHARGED WITH FRAUD

Defendants Allegedly Misled Clients About Performance –
Victims Lost Almost $2 Million On Hedge Fund

October 12, 2006 - PHILADELPHIA – United States Attorney Pat Meehan today announced the filing of an indictment* against Anthony P. Postiglione, Jr. and William J. Lennon, charging them with eighteen counts of mail fraud and one count of securities fraud. Postiglione is also charged with one count of obstruction of justice. The indictment charges that the defendants, both stockbrokers, bilked investors out of almost $2 million.

According to the charges, Postiglione and Lennon were financial consultants who co-founded a hedge fund called the Fountainhead Fund LP ("Fund") in October 2001. Beginning in September 2001, defendants Postiglione and Lennon raised approximately $5.19 million from 17 investors. The indictment charges that the defendants misrepresented the risks of the Fund to early investors. The indictment also charges that after suffering a loss in the first full quarter of the Fund's existence, defendants Postiglione and Lennon created false and misleading quarterly account statements and newsletters and sent them to Fund investors, stating that the Fund was making money when, in fact, the Fund was losing money.

“The clients did not know what they were getting into,” said Meehan. “They were intentionally led to believe the fund they bought into was thriving when, in reality, it was going under.”

Additional investors contributed money in reliance on the false representations that the Fund was profitable. From November 2001 to July 30, 2004, when defendants ceased operating the Fund, Fountainhead Fund investors never received an accurate quarterly statement. In total, victims lost over $1.98 million.

The indictment also charges that in August 2004, defendant Postiglione knowingly falsified a document with the intent to obstruct the F.B.I. investigation.


DEFENDANT


ADDRESS


AGE [Date of Birth]

Anthony P. Postiglione, Jr.
Clothier Springs Rd
Malvern, PA 19355
Age 36
William J. Lennon
Letitia Lane
Media, PA 19063
Age 39

If convicted, defendant Postiglione faces a maximum possible sentence of 385 years imprisonment, a 3 year period of supervised release, $ 4,760,000 fine and a $2000 special assessment.

If convicted, defendant Lennon faces a maximum possible sentence of 365 years imprisonment, a 3 year period of supervised release, $ 4,510,000 fine and a $1900 special assessment.

The case was investigated by the Federal Bureau of Investigation and has been assigned to Assistant United States Attorney Joan E. Burnes.


UNITED STATES ATTORNEY'S OFFICE
EASTERN DISTRICT, PENNSYLVANIA
Suite 1250, 615 Chestnut Street
Philadelphia, PA 19106
Contact:
RICH MANIERI
Media Contact
215.861.8525

*An Indictment or Information is an accusation. A defendant is presumed innocent unless and until proven guilty.

Benjamin Franklin Photo by B. Krist for the Greater Philadelphia Tourism Marketing Corporation