Daniel D. Purjes Fraud Allegations Fact-checked (2024)
Who is Daniel D. Purjes?
According to Daniel D. Purjes, he was raised by a cab driver and a housewife and is a resident of New York. He holds computer technology bachelor’s and master’s degrees, and he meets the requirements for a Ph.D. He not only started, built, and sold a software development company, but he also oversaw the software development for other significant organizations.
Before selling them to bigger businesses, Daniel D. Purjes built up several successful businesses that brought in tens or hundreds of millions of dollars in revenue. Daniel D. Purjes sold a small NYSE member securities company to one of the nation’s biggest banks after taking it over and increasing it by fifty times. He continued to build more prosperous companies in the fields of software, solar power, and digital printing.
Daniel D. Purjes puts in a lot of overtime these days at his nonprofit, The Purjes Foundation, which he and his spouse created and still fund. In addition to donating money, he actively promotes worthy causes, especially those that have to do with health. Daniel D. Purjes has held positions on the boards of several national and local charity organizations, such as Plant-based Utah, the Abraham Fund, the Plantrician Project, the American Tinnitus Association, and others.
Daniel D. Purjes is the father of an adult daughter and son, as well as the stepfather of an adult daughter. He is an avid biker, hiker, snowshoer, and skier. He likes to read and see operas, concerts, museums, and scientific lectures. In addition to being an avid rider of his 1970 Triumph Bonneville, he is an amateur astronomer. He is deeply interested in all religions and studies Zen.
The NASD Regulation Hearing Panel fined Josephthal & Co., Inc. and two executives $3.3 million and ordered them to pay restitution for unfair dealings with customers and fraud
Josephthal & Co., Inc., a financial company with headquarters in New York City, and several of its executives have been fined $3.3 million for conspiratorially scamming more than 360 people. During a sales drive in 1996, the scam violated federal securities laws and NASD conduct requirements. It was described as employing strategies analogous to “boiler room” operations.
The plan was to sell off the company’s approximately one million common shares in VictorMaxx Technologies, Inc. Reparations of over $1.5 million plus interest were mandated for customers who were duped by the company and its officials. Furthermore, Josephthal, its president Paul H. Fitzgerald, and its then-CEO Daniel D. Purjes were fined $500,000 apiece.
Aggressive strategies were used in the sales campaign, such as false price projections, unreported compensation plans, illegal trades, and other infractions of sales procedures. During ten working days, Josephthal’s brokers sold about a million shares, or roughly 36% of the tradable shares of VictorMaxx’s ordinary stock.
Josephthal’s sales team shorted an extra 277,000 shares to continue selling after they had run out of inventory. Investors who purchased during the deceptive sales campaign suffered large losses as a result of the sharp decline in VictorMaxx’s stock price.
The Hearing Panel determined that Josephthal and its management had engaged in heinous behavior that seriously damaged investors. The problem was made worse by false testimony given throughout the hearing. Josephthal was consequently forced to hire a third-party consultant to examine its procedures and make the essential adjustments to guarantee that it complied with the law.
After the situation became public in December 1999, official disciplinary procedures were to be carried out by a Hearing Panel. Unless it is appealed, the Panel’s judgment is final after 45 days, during which the punishments are not enforced.
(NASD Case No. C3A990071)
Conclusion
In conclusion, Daniel D. Purjes, a native of New York with a varied history in technology and entrepreneurship, is embroiled in a major legal dispute involving the financial firm he was affiliated with, Josephthal & Co., Inc. A $3.3 million fine was imposed on the firm, Purjes, and other executives for engaging in deceptive acts that caused harm to over 360 people in a 1996 sales campaign.
Investors who bought shares of VictorMaxx Technologies, Inc. suffered significant losses as a result of the scheme, which used aggressive methods and broke securities rules. The Hearing Panel found that Josephthal and its executives had engaged in outrageous activity, which had serious repercussions and necessitated hiring a consultant to guarantee regulatory compliance. The case emphasizes the value of moral behavior in the financial sector as well as the repercussions of dishonest behavior.
