Giving Frederick Moseley the benefit of the doubt, he must have had a huge memory lapse while applying to become a broker-dealer in the state of Connecticut.
Moseley, the erstwhile president of Triumph Capital, a Boston private equity firm, last month had his registration denied, according to Connecticut Department of Banking, on account of certain irregularities in his registration form. He was applying as an agent of an entity called Landers, Lane & Moseley Capital Partners, affiliated with Landers Partners, based in Stamford, Connecticut.
Moseley was also fined $20,000 (€16,000) for filing what the banking commissioner describes as a ‘false’ and ‘misleading’ application. To questions asking whether Moseley had ever controlled an organisation that was charged, convicted or had plead guilty to any felony, Moseley answered ‘no.’
Considering that Triumph Capital (though not Moseley himself) was famously charged with, and later convicted of, several felonies, which landed its chairman in jail, this response seems a tad disingenuous.
Triumph Capital, in fact, is a household name in Connecticut financial circles for its involvement in the Paul Silvester scandal. While treasurer of the state from 1997 to 1999, Silvester directed dubious fees and favours from several private investment firms in exchange for capital commitments. One of these firms was Triumph, whose chairman, Fred McCarthy, last year plead guilty to criminal violation of a gratuity statute. In February, McCarthy was sentenced to a year in prison. The firm and its general counsel, Charles Spadoni, were convicted of racketeering, wire fraud, bribery and obstruction of justice.
Among many revelations of the Silvester scandal, McCarthy admitted to giving a million-dollar consulting contract to Silvester's then-mistress, Lisa Thiesfield, in exchange for a commitment of state money to a Triumph fund.
A consultant who once worked with Triumph recently testified that during the time these charges were emerging, Moseley told her the allegations were false because he “didn't even know who this Thiesfield character is.” Now that Moseley has been fined for neglecting to mention Triumph's recent felony charge in a routine broker-dealer application, it would appear that his poor memory has again gotten the better of him.