The founder of a New York private equity firm was indicted Monday for allegedly stealing $9.3 million from investors and spending it on jewelry, a luxury car and rent, according to Manhattan prosecutors.
West Point grad Lawrence Penn III is accused of siphoning dough from Camelot Acquisitions to a shell company set up by his pal Michael Ewers – who was also charged in the scheme that ran from 2010 to 2013.
The diverted cash was made to look like payments for Ewer’s services but actually served as a front, prosecutors said.
Penn, 44, allegedly used the stolen loot for credit card payments, cash withdrawals, luxurious office space, rent for two apartments, jewelry and even a fancy car.
He turned himself in and pleaded not guilty at his arraignment Monday in Manhattan Supreme Court wearing a sharp pinstriped suit and red tie.
Justice Laura Ward set bond at $2.5 million.
Ewers, 44, was arrested Sunday in San Francisco and is expected to be extradited to New York.
The Security and Exchange Commission filed a complaint in Manhattan federal against the longtime friends precipitating the criminal charges, prosecutors said.
The high rollers face raps for grand larceny, money laundering and falsifying business records. Their bank accounts have been frozen.
“Stealing from investors not only damages the market, it hurts individuals,” said District Attorney Cy Vance. “The defendants in this case are charged with defrauding the fund for millions while continuing to solicit unwitting investors. My office will continue to root out financial fraud regardless of how or against whom the fraud is committed.”