A Marstons Mills man was arrested Thursday and charged with investment fraud. According to a release from US Attorney Carmen Ortiz's Office, 38-year-old Jeffrey M. Semanscin allegedly bilked three investors out of $800,000 over the course of six years.
Following his arrest, Semanscin was charged with violating the 1940 Investment Advisers Act. According to the charges, Semanscin reportedly ran an investment fraud scheme in which he pretended to be the managing director of a private equity fund called Ibex Omega Private Equity between 2007 and 2013.
Semanscin, who was at one time a registered stockbroker, sent periodic performances summaries and financials to the three investors who entrusted he with $800,000, according to the release.
By November 2013, when authorities had caught up with him, only $450 of the money was left, the rest having been allegedly used to cover his own personal expenses.
If convicted, Semanscin could face the maximum sentence of five years in prison, followed by three years of supervised release. He could be assessed a fine of $10,000 and ordered to repay the $800,000 to his alleged victims.
In October 2013, the United States Attorney's Office learned about Semanscin through a tip via the US Securities and Exchange Commission's website. According to the Financial Industry Regulatory Authority (FINRA), Semanscin is not currently registered. He was last registered, according to FINRA with Bank of America Investment Services, Inc. in Yarmouth Port between February 2005 and September 2006.
According to several financial and investment sites, Ibex Omega (Ibexomega) Private Equity Limited Partnership is listed at 1323 Race Lane in Marstons Mills. According to the Town of Barnstable Assessor's Database, 1323 Race Lane is owned by Amy M. Rugar and Jeffrey M. Semanscin. The three-bedroom home is assessed at $342,000, nearly $100,000 less than when it was purchased in 2007.