DA: NY man used investors' cash to pay bookmaker

AP News
Posted: May 10, 2011 8:20 PM
DA: NY man used investors' cash to pay bookmaker

A New York businessman who drew the Securities and Exchange Commission's attention in the 1990s is now facing criminal charges of swindling investors out of more than $1.2 million.

The Manhattan district attorney say Steven Bingaman used some of the money to pay a Las Vegas bookmaker and pay mortgages on homes in pricey Bedford, N.Y., and Martha's Vineyard, Mass.

Bingaman pleaded not guilty Tuesday to grand larceny and other charges. His lawyer hasn't returned a call seeking comment.

Prosecutors say the 54-year-old Bingaman made phony promises to woo investors for various ventures.

The SEC settled a 1996 administrative proceeding against Bingaman in 2003. The agency's order says he and another man paid a stockbroker to buy shares in a medical-software development company for the broker's clients.