NEW YORK (Bloomberg) - Gryphon Holdings Inc.'s owner and four employees of the Staten Island, New York-based investment firm were charged with conspiracy to commit securities fraud and wire fraud in an alleged $17.5 million scheme.

Kenneth Marsh, 43, Gryphon's president, and the employees, who are accused of falsely claiming endorsements from financier George Soros, are scheduled to appear in court today, Brooklyn US Attorney Benton Campbell said in an e-mailed statement.

Investors, usually elderly retirees, received unsolicited e-mails and phone calls touting Gryphon's services, according to the statement. Once the victims provided contact information, Gryphon's employees used high-pressure tactics and misrepresentations to sell more expensive versions of their services, Campbell said.

"Fair capital markets depend on the protection of the small investor," he said. "We will vigorously investigate and prosecute operators of fraudulent advisory schemes."

Gryphon's employees lied about their credentials, falsely claiming to oversee billion-dollar hedge funds from offices on Wall Street and in London and Sydney, Campbell said. The shop was run from a Staten Island strip mall, he said.