Category Archives: Securities Fraud
SEC Charges Texas Pair for Misleading Elderly & Retired Investors in Life Settlements
On May 11, the U.S. Securities and Exchange Commission filed a civil lawsuit in Texas against two insurance salesman accused of illegally selling “life settlements” to more than two dozen investors, many of them elderly and retired. Life settlements are fractional interests investors purchase in the death benefits payable under a life insurance policy…. Read More »
SEC, U.S. Attorney Prosecute Miami Ponzi Scheme That Targeted Retirees
A Miami resident is facing federal criminal charges for allegedly running a Ponzi scheme targeting retired public sector workers. Phil Donnahue Williamson has already settled civil charges brought by the U.S. Securities and Exchange Commission, agreeing to repay nearly $750,000 to investors. The U.S. Attorney’s Office in Miami separately charged Williamson with investment advisor… Read More »
SEC Charges Atlanta Broker With Defrauding Public Employee Pension Funds
Millions of state and local government employees depend on public pension systems to safeguard their retirement. Florida itself operates the fourth-largest public pension system in the country. And when unethical investment advisers try to take advantage of public pension systems by recommending unsuitable uses for pension funds, workers and retirees may be put at… Read More »
SEC Halts “Prime Bank” Scheme Targeting Construction Industry
On May 14, the U.S. Securities and Exchange Commission filed a civil complaint against six individuals and several companies accused of participating in a scheme to sell non-existent financial instruments to unsuspecting investors seeking financing for construction projects. SEC v. North Star Finance LLC According to the SEC’s complaint, in February 2014, Thomas Ellis,… Read More »
Identifying and Protecting Against Elder Financial Abuse
Financial abuse of the elderly is a serious problem in Florida and throughout the country. Many elderly persons exhibit signs of diminished capacity to manage their own finances. Unscrupulous relatives and would-be financial advisers often take advantage of such persons. Planning to Avoid Elder Abuse through Estate Planning In a recent Investor Bulletin, the… Read More »
SEC Charges Rhode Island Broker With Running $11 Million Ponzi Scheme
On May 7, the U.S. Securities and Exchange Commission charged a Rhode Island investment adviser with running what amounted to a Ponzi scheme. The SEC alleges Patrick Churchville used his one-man company, ClearPath Wealth Management, LLC, to defraud investors out of millions of dollars. The SEC has asked a federal judge in Providence to… Read More »
SEC Charges Texas Army Veteran With Defrauding Fellow Servicemen
On April 13, the U.S. Securities and Exchange Commission charged Leroy Brown, Jr., of Killeen, Texas, with securities fraud. The SEC said Brown, a 12-year veteran of the U.S. Army, conducted a “fraudulent scheme to lure current and former U.S. military personnel and others to invest with him and his firm.” A federal judge… Read More »
Texas Securities Regulators Order Unregistered Broker to Pay Back His Victims
Securities fraud and stockbroker fraud are not just federal matters. Florida and other states utilize their own securities regulators who are charged with protecting the public from unregistered and unlicensed brokers who defraud investors. For example, on April 7, the Texas State Securities Board (TSSB) announced a plea agreement with Robert P. McGann, an… Read More »
SEC Charges Four With Penny Stock Fraud Aimed at the Elderly
On April 7, the U.S. Securities and Exchange Commission sued Boca Raton-based eCareer Holdings, Inc., and its chief executive officer, Joseph J. Azzata, with securities fraud in connection with the sale of the company’s penny stock. According to a complaint filed in Miami federal court, Azzata engaged several individuals previously barred from acting as… Read More »
SEC, Prosecutors Charge JPMorgan Adviser With Embezzling $20 Million In Client Funds
On April 16, the U.S. Securities and Exchange Commission and federal prosecutors in New York City charged a former JPMorgan Chase investment advisor with defrauding clients out of more than $20 million. The New York Times reported JPMorgan officials “alerted federal authorities to the apparent theft and misuse of client money.” The accused, Michael… Read More »
