Category Archives: Stockbroker Fraud
Florida Man Settles SEC Charges Arising from “Boiler Room” Scam
On August 21, a West Palm Beach resident agreed to settle charges brought by the U.S. Securities and Exchange Commission over his alleged operation of a “boiler room” fraud which reportedly scammed investors out of more than $1.5 million. According to a complaint filed by the SEC with a federal court in Philadelphia, Moshe… Read More »
What Investors Should Know About Recent Stock Market Volatility
August was a tough month for many investors, as several major stock indexes posted their steepest declines in more than three years. Prompted by a sell-off in the Chinese stock markets which began in mid-June, American investors are now experiencing a resurgence in “volatility” with respect to their own portfolios. Such volatility also raises… Read More »
Citigroup Affiliates to Repay Investors $180M After SEC Investigation
On August 17, two affiliates of Citigroup agreed to pay nearly $180 million in restitution and fines to the U.S. Securities and Exchange Commission as part of a settlement arising from two now-defunct hedge funds. According to an SEC administrative order, the two funds misled thousands of investors as to their actual risks. When… Read More »
SEC Sanctions Broker Who Defrauded Investors in Real Estate Company
Many people rely on family and friends for investment advice. While there is nothing wrong with this, it is important to always do your own homework before trusting someone else—even someone you think you know—with your money. Securities fraud schemes often rely on misplaced trust by inexperienced investors. For example, the U.S. Securities and… Read More »
Ex-California Broker Stole Millions from Trust Clients
Many people establish a living trust to manage their assets. A trust is an estate planning device where a person transfers their assets to a trustee. The trustee can be the same person who established the trust or it can be someone else. Whoever the trustee is, he or she must manage the trust… Read More »
SEC Stops Ponzi Scammer Selling Notes in Florida Software Company
Although all Ponzi schemes inevitably collapse, it can be years before investors (or regulators) catch up with the scammer. For example, the U.S. Securities and Exchange Commission recently charged a Texas man with running a Ponzi scheme for more than a decade. The alleged scheme centered on efforts to raise money for a Florida-based… Read More »
Court Says Bankrupt Ex-Broker Must Still Pay Back Cheated Clients
When stockbrokers commit fraud, their affected clients and the U.S. Securities and Exchange Commission can recover damages through the courts. But what happens when the broker files for bankruptcy in an effort to get around such civil judgments? A recent decision by a Philadelphia appeals court offers one answer. SEC v. Bocchino Steven Bocchino… Read More »
SEC Charges Man With Promissory Note Fraud in Connection With Florida Property
On June 25, the U.S. Securities and Exchange Commission filed a civil lawsuit in Utah against Dwight Shane Baldwin, accusing him of securities fraud in connection with the sale of promissory notes backed by two defaulted real estate loans, including one in Seminole County, Florida. According to the SEC’s complaint, Baldwin acquired the defaulted… Read More »
SEC Bars Three Brokers for “Churning” Client Accounts
Many securities brokers work on commission. This generally means the broker receives a payment for each trade he or she executes on a customer’s behalf. While this is perfectly ethical, some brokers cross the line and engage in an illegal practice known as “churning.” As explained in a 1986 federal appeals court decision, there… Read More »
Feds Say Ex-Stockbroker Used Fictitious CD Sales to Buy Florida Condo
On July 1, the U.S. Securities and Exchange Commission and the U.S. Attorney’s Office in Philadelphia filed civil and criminal charges, respectively, against Malcolm Segal, a former stockbroker accused of running a Ponzi scheme. These actions come after a November 2014 order by the Financial Industry Regulatory Authority which permanently barred Segal from working… Read More »