PREET BHARARA, the United States Attorney for the
Southern District of New York, announced that STEPHEN R. GREEN,
former Chairman and CEO of Mayfair Capital Group ("Mayfair
Group") was sentenced today to 41 months in prison for committing
securities fraud arising from his scheme to defraud investors of
over $5.75 million for his own use. The sentence was imposed in
Manhattan federal court by United States District Judge JOHN G.

According to the criminal Information previously filed
against GREEN, other documents filed in this case, and statements
made during GREEN's plea proceeding:

Between 2005 and 2009, GREEN made false representations
to a number of investors (the "victim-investors") that he would
invest their funds in limited partnership vehicles and/or an
asset management company. Based on those false representations,
GREEN defrauded the victim-investors of approximately $5.75
million. For instance, in late 2005, GREEN falsely represented
to an individual investor ("Investor 1") that he was starting
Mayfair Group, an investment company that purportedly planned to
invest in the hospitality industry, and more specifically
restaurant franchises. In March 2006, Investor 1 gave GREEN
approximately $1 million for the Mayfair Group. Next, in late
2007, GREEN falsely represented to Investor 1 that another
investor ("Investor 2") was prepared to invest $18 million in
Mayfair Group, and explained to Investor 1 that Investor 1's
stake would be diluted unless he invested an additional $1
million. In furtherance of his fraudulent scheme, GREEN also
provided Investor 1 with a Restated Agreement of Limited
Partnership that falsely represented that Investor 2 had invested
$18 million with Mayfair Group. On November 20, 2007, Investor 1
transferred an additional $1 million to Mayfair Group's bank

GREEN further solicited Investor 1 to invest in Mayfair
India, a subsidiary of Mayfair Group purportedly formed solely to
invest in Copal Partners L.P. ("Copal"). In 2006, GREEN falsely
represented to Investor 1 that he held warrants in Copal, a
limited partnership with an ownership interest in a financial
services research and analytic services business. He further
represented that Copal would "go public" on the London Stock
Exchange by the end of 2006, and that the warrants could be
converted into shares of Copal provided that he could obtain $2
million to finance the warrant-to-shares transaction. GREEN
falsely asserted that Mayfair Group would invest $1 million, that
GREEN would personally invest $250,000, and that he was seeking a
$750,000 investment from Investor 1. On August 7, 2006, Investor
1 invested approximately $750,000 in Mayfair India, after which
GREEN falsely represented to Investor 1 that he owned
approximately a 7% equity interest in Copal, and that his
investment had "doubled or trebled in value." Contrary to
GREEN’s representations however, he never made an investment in
Copal on behalf of Mayfair Group, Mayfair India, himself or
Investor 1, and no Copal shares were ever issued to GREEN,
Mayfair Group, or any of its subsidiaries.

GREEN, 46, of Locust Valley, New York, previously
pleaded guilty before Judge KOELTL on December 14, 2009, to two
counts of securities fraud. In addition to his prison term,
Judge KOELTL sentenced GREEN to three years of supervised release
and ordered him to pay $5,775,000 in restitution and to forfeit
$5,775,000 in proceeds from his offenses.
Mr. BHARARA praised the investigative work of the
Federal Bureau of Investigation.
Assistant United States Attorney JULIAN J. MOORE is in
charge of the prosecution.
This case was brought in coordination with President
BARACK OBAMA's Financial Fraud Enforcement Task Force, on which
Mr. BHARARA serves as a Co-Chair of the Securities and
Commodities Fraud Working Group. President OBAMA established the
interagency Financial Fraud Enforcement Task Force to wage an
aggressive, coordinated, and proactive effort to investigate and
prosecute financial crimes. The task force includes
representatives from a broad range of federal agencies,
regulatory authorities, inspectors general, and state and local
law enforcement who, working together, bring to bear a powerful
array of criminal and civil enforcement resources.

The task force is working to improve efforts across the federal executive
branch, and with state and local partners, to investigate and
prosecute significant financial crimes, ensure just and effective
punishment for those who perpetrate financial crimes, combat
discrimination in the lending and financial markets, and recover
proceeds for victims of financial crimes.