Andrew and Aaron Bogdanoff, father and son, reversed their previous not-guilty pleas and pleaded guilty in federal court in Philadelphia this morning in the Remington Financial/Remington Capital Group fraud case. They were among brokers accused of soliciting fees from hundreds of U.S. small businesses to arrange loans that never materialized; prosecutors say brokers kept millions in fees even though they knew there were no loans available for the hopeful -- or desperate -- borrowers.
Other Remington cases in other states have also brought guilty pleas. Former Remington boss Matthew McManus has pleaded not guilty and is scheduled for trial Oct. 28.
"I'm ecstatic," California business owner Ingrid Robinson, who collected victims' stories to add to her own and relentlessly pressed prosecutors in several cities, including Philadelphia, to bring charges, told me. “We pushed this case so far that [several] men were, in the end, indicted. And now they’ve started to plead guilty.
“Next, we’re trying to use this case to get reform of broker regulations," she added. We hope Congress will get up and put consumer regulations in case so we have options of getting back our money. The SEC won’t do anything. So we’re going to Congress."