WIVB-TV News4 Buffalo, NY |Federal agents raid financial firm i...

The company's under investigation for ripping off the elderly. Federal authorities raided this Sweet Home Road investment business Thursday after a three-year-long investigation.

[Stranger]

who rips off the elderly? These people are criminals, capital Gane? More like capital ripoff!!

[NT Man]

Now they will find problems with DeGraff's finances I'll bet ya!

[Mike Grzeskowiak]

You all do not know The Gane Family like I do. I have been a close family friend for a long time, and they are honest, hardworking people. This is an obvious attempt to slander their business. I can't believe that the news would publish this rubbish without any further investigation.

[Mike Grzeskowiak]

Stranger wrote:

who rips off the elderly? These people are criminals, capital Gane? More like capital ripoff!!

Maybe the people posting negative comments here should be man enough to post their real names. Again, false accusations against honest people.

[Jason from Williamsville]

What a shock that he's a Hillary supporter.

[Sad]

they don't just do random raids. They looked into this for 3 years before this move. Maybe that family had some not so honest secrets that you did not know about Mike. If they are innocent the truth will set them free.

[no surprise]

This is right in keeping w/ the Gane legacy.
Many businesses in the area are owed money by Guy.
I've always wondered how he could manage other people's money when his personal finances were always such a mess. Now we all know ....
he couldn't.

[Lawman]

Mike Grzeskowiak wrote:

You all do not know The Gane Family like I do. I have been a close family friend for a long time, and they are honest, hardworking people. This is an obvious attempt to slander their business. I can't believe that the news would publish this rubbish without any further investigation.

Mike, wake up and smell the coffee! A 3 year investigation followed by a raid, this is more than just a witch hunt Mike. After all my years in Law Enforcement I would never make a blanket statement about someones character, because the truth is, you just don't know!

[da man]

Mike Grzeskowiak wrote:

You all do not know The Gane Family like I do. I have been a close family friend for a long time, and they are honest, hardworking people. This is an obvious attempt to slander their business. I can't believe that the news would publish this rubbish without any further investigation.

Are you on the payroll too?

[Oliver]

I am scared! I have all of my retirement assets with Watermark M-One! What happens now?

[Guy Gane III]

This "investigation" will prove that what the news has reported is false. I would never attempt to defraud anyone. Those who know me, know this.

[anonymous]

Read the following, you be the judge!

http://www.sec.gov/litigation/complaints/2008...

There's a summary of this report at this site as well:

http://www.sec.gov/litigation/litreleases/200...

[what a joke]

I wouldn't hold your breath there Jr... you probably have no clue as to what your father has really been doing. I mean, it's not like you actually WORKed for the wages that he paid you; daddy just threw the money at you (spoiled brat) Maybe you should read that little 17 page report from the SEC, and find out the facts before you say something- Anyways, the smart thing to do in this type of situation is keep your mouth SHUT!

[smart girl]

The old Ponzi scheme..those who manufacture it, never believe it is illegal or criminal..thus Gane and his family friend's dismissal of it! Watch for the plea in a few months..they eventually get it when their lawyer tells them..it is a crime and you knew it,so fess up before a jury convicts you and big jail time for stealing from the elderly! Remember, you never ever know anyone..really..ask the ex-Mrs. Sanchez!

[civil war fan]

"the apple never falls far from the tree"
Guy III, were you not ever suspicious of dad's business? If not, you're too clueless to be working in finance. If so, you're guilty.

[Dottie]

Wow, you people are brutal! None of you know the facts and you’re already judge and jury. Not only are you judging the situation without having all the information, you’re also condemning the Gane family. Let the people involved in this case do their job; the officials will do the work they need to do and you really need to give the Gane family a chance to answer the charges. You don’t know the “truth” so unless you’re personally involved in this case and/or until the investigation is complete, your opinions, snide remarks and “judgments” are nothing but “empty, hot air”.

[NY taxpayer]

Mike Grzeskowiak wrote:

You all do not know The Gane Family like I do. I have been a close family friend for a long time, and they are honest, hardworking people. This is an obvious attempt to slander their business. I can't believe that the news would publish this rubbish without any further investigation.

Honest people?? Obviously the FBI didn't see it that way.

[NY taxpayer]

Guy Gane III wrote:

This "investigation" will prove that what the news has reported is false. I would never attempt to defraud anyone. Those who know me, know this.

Ahh... Yet another government 'conspiracy'. Isn't that what put the Rigas's behind bars too? Get real, this wasn't a 'we had nothing better to do today' situation, this happened AFTER a 3 year investigation.

[County Taxpayer]

"SUMMARY
1. This civil enforcement action arises out of an ongoing offering fraud and Ponzi
scheme orchestrated by Gane and his company, M-One. From at least May 2005, Gane and
Altadonna, a registered representative associated until recently with a registered broker-dealer,
and others, raised approximately $5.7 million in fraudulent, unregistered securities transactions.
They generated approximately $5.1 million by selling "convertible debentures" issued by
Watermark Financial and Watermark Holdings (collectively, "Watermark')(or by M-One for the
benefit of Watermark) to approximately 90 unsophisticated investors, a number of whom were
senior citizens or near retirement age. Gane and Altadonna raised an additional $580,000 by
selling promissory notes issued by Watermark Holdings and Watermark Capital that provided for
monthly rates of return from 1% to 3.5%(12% to 42% annually). Neither securities offering was
registered with the Commission.
2. Gane is a principal of each of the issuing entities and was not associated with a
registered broker-dealer when he sold some of the debentures. Gane and Altadonna told
investors that the money they invested would be used to purchase or develop real estate. In
reality, Gane operated a Ponzi scheme by:(a) using new investor funds to pay back earlier
investors; (b) misappropriating the investors' funds by distributing them to hmself, h s family
members, and others; and (c) transferring a substantial portion of investor funds to Denkon, Inc.,
an entity located in Palm Beach Gardens, Florida, for no apparent consideration.
3. Most of the Watermark debentures do not become due until sometime this year.
With respect to those debentures that have matured to date, Gane and Altadonna have repaid the
investors using new investor hnds or induced the investors to reinvest their funds in another
debenture to defer repayment, or have made assurances that payment was forthcoming. In at
least one instance, money raised through the sales of the promissory notes was used to pay back
an investor in the debentures."

From the SEC complaint....seems that there is some evidence of wrongdoing here...

[Teri]

I am soooo glad that someone out there looks after people and brings this sort of fraud out in the open. I hope they are punished as hard as they can be if it turns out they did do all of these horrible things! Way to go those who worked on this!!!!