Daniel D. Purjes: Fraud Allegations Fact-Checked (2024)
Originally Syndicated on June 14, 2024 @ 9:06 am
Daniel D. Purjes: A Brief Overview
Claiming to be a lifelong New Yorker, Daniel D. Purjes was brought up by a cab driver and a housewife. He went on to earn bachelor’s and master’s degrees in computer technology and even finished his doctorate. His software development expertise included starting, growing, and selling a software development company, as well as managing the software development for other major companies.
Daniel D. Purjes built multiple companies from the ground up to generate tens or hundreds of millions of dollars in profit before selling them to bigger organizations. After buying out a modest NYSE member securities company, Daniel D. Purjes increased its value by 50 times before selling it to a major American bank. He persisted in growing other successful businesses, such as those dealing with digital printing, software, and solar power.
In his spare time, Daniel D. Purjes is actively involved with the nonprofit organization he co-founded with his wife, The Purjes Foundation. He does more than just provide money to good causes; he is an outspoken advocate for health-related causes. Among the many national and local organizations that Daniel D. Purjes has served on the boards of are the American Tinnitus Association, the Abraham Fund, the Plantrician Project, Plant-based Utah, and numerous others.
Daniel D. Purjes has three adult children: a son, a daughter, and a stepdaughter. He loves to go skiing, bicycling, hiking, and snowshoeing. Science discussions, museums, operas, concerts, and reading are some of his favorite things to do. He loves to ride his vintage 1970 Triumph Bonneville motorcycle and dabbles in amateur astronomy. His interest in all faiths stems from his study of Zen.
A $3.3 million fine and restitution order were imposed by the NASD Regulation Hearing Panel on Josephthal & Co., Inc., and two executives for deceptive client transactions and fraud
A New York City-based financial company called Josephthal & Co., Inc. and several of its officials have been fined $3.3 million for using a fraudulent plan to deceive more than 360 victims. The plan involved violating federal securities laws and NASD conduct restrictions during a sales campaign in 1996. It was described as using tactics comparable to “boiler room” operations.
Liquidating the company’s approximately one million common shares of VictorMaxx Technologies, Inc. was the main goal of the scheme. Clients who were duped by the company and its officials were mandated to get compensation of nearly $1.5 million, plus interest. Josephthal, the company’s president Paul H. Fitzgerald, and its then-CEO Daniel D. Purjes were also fined $500,000.
Aggressive methods, such as false price projections, unreported compensation plans, unapproved trades, and other infractions of sales procedures, were used in the sales effort. Almost one million shares, or nearly 36% of the marketable shares of VictorMaxx’s common stock, were sold by Josephthal’s brokers for ten business days.
Once their stock ran out, Josephthal’s sales force shorted another 277,000 shares to keep up the sales. VictorMaxx’s stock price plummeted as a result, resulting in large losses for investors who made purchases during the deceptive advertising effort.
The Hearing Panel determined that Josephthal and its executives’ actions were heinous and caused investors great injury. A further blow to the situation came from false testimony given during the hearing. Consequently, Josephthal had to hire a third-party consultant to examine its procedures and implement the changes needed to guarantee regulatory compliance.
A Hearing Panel was constituted to carry out official disciplinary procedures after the case was made public in December 1999. Unless an appeal is filed within those 45 days, the Panel’s judgment is final and the sanctions are not enforced.
Conclusion
Finally, Daniel D. Purjes, a New York native with a wide career in technology and entrepreneurship, is embroiled in an important legal lawsuit involving Josephthal & Co., Inc., a financial corporation he worked for. The 1996 sales campaign deception that damaged over 360 people cost the business, Purjes, and other officials $3.3 million. Investors who bought VictorMaxx Technologies, Inc. shares lost a lot due to the aggressive strategy and securities law violations. Josephthal and its management committed atrocious behavior, resulting in hefty penalties and the need to appoint a consultant to assure compliance. The case emphasizes financial ethics and the dangers of fraud.
