Gryphon Holdings’ Marsh Sentencing Postponed

The sentencing of Kenneth Marsh, the former president of Gryphon Holdings, was postponed on August 11, 2011 by the U.S. District Court for the Eastern District of New York.  Marsh had been arrested in April of 2010 on charges of securities and wire fraud---together with co-defendants---and was to be sentenced on August 11.  U.S. District Judge Jack B. Weinstein re-scheduled the sentencing to September 14 after hearing testimony from seven of the alleged victims that Marsh’s fund had promised them high returns before draining their savings.

Prosecutors alleged that Marsh and Gryphon had defrauded individuals, including retirees, of more than $17.5 Million for fees and investment advisory services.  It was a boiler room set-up, claiming to be located on Wall Street in Manhattan while operating instead from a strip mall in Staten Island.  Victims would receive unsolicited emails and telephone calls that encouraged them to visit the advisory firm’s website.  Contact information was then obtained; expensive, upgraded services were sold; fraudulent investment recommendations were offered.  Marsh pled guilty to one count of securities fraud in April of 2011.

In June of 2011, Marsh agreed to a summary judgment that had been filed in a Securities and Exchange Commission suit filed in New York.