SEC v. Emanuel L. Sarris, Sr., et al., Case No. 12-cv-04272-TON (N.D. Pa.).  On July 30, 2012, the SEC announced fraud charges against Sarris and his firm Sarris Financial Group, Inc.  (“Sarris Financial”) for their role in a Ponzi scheme orchestrated by another individual whom the SEC already sued and from whom the SEC obtained $44 million in disgorgement and prejudgment interest and a $150,00 civil monetary penalty.  From 2001 to 2009, Sarris, through Sarris Financial, got 70 people to invest more than $30 million in the “Kenzie Funds” which supposedly traded in foreign currencies.  In reality, the Kenzie Funds were a massive Ponzi scheme in which 400 investors lost more than $105 million.  When selling the Kenzie Funds, Sarris and his firm misrepresented their relationship with the Kenzie funds; claimed to see actual foreign currency trading; made unsubstantiated claims about the safety and performance of the investment; and proposed that new investor money be used to redeem departing investors.  Sarris and his firm are charged with violating Section 5(a), 5(c), and 17(a) of the Securities Act, and Section 10(b) of the Exchange Act and Rule 10b-5, thereunder.  The SEC seeks civil monetary penalties, disgorgement plus prejudgment interest and injunctive relief.