Tag Archives: Stockbroker theft

Paul Andrews Rinfret Victims

If you were an investor of Paul Andrews Rinfret please call 1-866-817-0201 for a free and confidential consultation with a private attorney. 

Rinfret orchestrated a years-long scheme to defraud investors.  He sold limited partnership interests in an entity purported to trade in futures relating to the S&P 500, utilizing a purported algorithm he had developed.  Rinfret touted unreasonably high returns on his trading.  In truth, Rinfret simply stole most of the investors’ money in order to fund his lavish lifestyle.  Rinfret was arrested the morning of June 28, 2019 at his home in Manhasset, New York,

Investors have recourse when investment professionals turn bad.

Investors have recourse when investment professionals turn bad.

As stated by the SEC, Paul Rinfret deceived investors at every step:  Lying about his past returns in his solicitations.  Lying about having invested all of their entrusted funds, when he was actually spending much of it on things like jewelry, cars, and a Hamptons vacation home.  After receiving the funds he lied about how their money was growing. 

Rinfret obtained more than $19 million on the false representation that he would utilize their investment funds for trading. 

Rinfret’s lies were varied and many but that does not mean that portions of investors funds cannot be recovered.   If you are a victim, please call to discuss your options.   

Ameritas Broker Theft and Other Losses

If you have suffered losses, believe funds are missing from your account, or had funds stolen while with Ameritas Investment Corp., please call the Law Offices of Jeffrey Pederson at 1-866-817-0201 for a free consultation with an attorney.

We are currently investigating losses and missing funds of Ameritas investors due to inadequate supervision of Ameritas brokers.  Ameritas recently submitted an AWC, a settlement with regulators, in which the firm was censured and fined $50,000. Without admitting or denying the findings, the firm Stock handcuffsconsented to the sanctions and to the entry of findings that it failed to adequately monitor and otherwise supervise a registered representative’s activities. The findings stated that the firm did not detect that the representative changed a customer’s address of record to the address of the representative’s branch office, and then requested disbursements from the customer’s account to the new address of record. The customer did not authorize either the address change or the disbursement of funds. As a result, the firm sent funds from the customer’s account to the branch office, where the representative misappropriated the money. The firm’s supervisory systems and procedures at the time were not sufficient to adequately monitor its representative’s requests to change the customer’s address of record without her knowledge and to disburse funds to her new address.

Levi David Lindemann Ponzi Victims

Stock handcuffsAs reported in Investmentnews.com, Levi David Lindemann, a Minnesota-based investment adviser has received a six-plus-year prison sentence for stealing from clients and perpetuating a Ponzi scheme.

The 40-year-old adviser, Lindemann, was sentenced to 74 months in prison by a Minnesota federal court, after having pled guilty earlier this year to federal mail fraud and money-laundering charges.

Mr. Lindemann owned and operated Gershwin Financial Inc., which did business under the name Alternative Wealth Solutions, between 2009 and 2014.

“Lindemann abused his position of trust as a financial adviser to steal from his clients, including the elderly ” Mike Rothman, Minnesota’s commerce commissioner, said. “Lindemann defrauded his victims by promising to put their money in legitimate, safe investments when he actually used the funds to pay for personal expenses and Ponzi-type payments to other clients to cover up and continue his fraud.”

According to Mr. Lindemann’s guilty plea, he solicited funds from roughly 50 investors and said he would “use the invested funds to buy secured notes or other legitimate investment vehicles.”

If you are a victim of Lindemann or some other Ponzi scheme, please call 1-866-817-0201 to speak to a private attorney on a free and confidential basis to discuss your rights in private litigation.

Kenneth J. Daley of Merrill Lynch Improper Conduct

Kenneth James Daley with Merrill Lynch in Glenwood Landing, NY entered into a settlement agreement with FINRA in August 2016.  Pursuant to the terms of this agreement, he was barred from association with any FINRA member, which is any brokerage firm, in any capacity. Without
admitting or denying the findings, Daley consented to the sanction and to the entry of
findings that he concealed his improper receipt of funds from a customer.  The funds were paid
in connection with purported profits in an account of his member firm. The findings stated
that the customer contacted Daley about providing him with money to allow him to benefit
by sharing in the profits in her account with Daley’s firm. The customer wrote Daley a check
for $2,500 drawn from her cash management account with the firm. Daley immediately
contacted the customer because he was concerned that his firm would learn of the deposit,
which he knew to be prohibited. In order to avoid detection by the firm, Daley instead
provided the customer with his personal banking account details for an account he held at another financial institution and informed her that she could directly deposit funds related
to purported profits in her account with the firm to his personal checking account. As a
result, the customer deposited to Daley’s personal bank account eight additional checks,
each of which was drawn off of her non-firm bank account. In total, the customer gave
Daley $29,000 in connection with purported profits in her account, all of which Daley used
for personal expenses. Throughout this time period, Daley knew he was prohibited from
accepting such payments.

The findings also stated that Daley used his personal cell phone to text message customers.
Daley was prohibited from text messaging with customers unless done through an
approved firm platform. The findings also included that Daley submitted an annual firm
attestation falsely attesting that in the prior 12 months he had not used text messaging
with any customer. As a result, Daley prevented the firm from discharging its supervisory
responsibilities with respect to the review of his electronic communications and caused the
firm to fail to maintain such communications as required under FINRA and Securities and
Exchange Commission (SEC) rules.

FINRA found that Daley recommended that the customer purchase units of a non-traditional, leveraged crude oil exchange-traded fund (ETF) without having a reasonable basis to do so. On Daley’s recommendation, the customer purchased 5,000 units for a principal amount of $41,850. Daley did not liquidate the position until after the customer had experienced losses.

The AWC can be found at the following link.

Churchville Ponzi Scheme, Investment Fraud

If you were a victim of the Ponzi scheme or other investment fraud of Rhode Island investment adviser Patrick Churchville please call 1-866-817-0201.

Churchville has agreed to plead guilty to criminal charges for orchestrating a $21 million Ponzi scheme, according to a statement from the U.S. Attorney’s Office.

Stock handcuffsAside from that scheme, Churchville, 47, also committed investment fraud when he used $2.5 million of investor funds to help purchase his home and failed to pay more than $820,000 in personal federal income taxes, according to the statement.

Churchville, the owner and president of ClearPath Wealth Management, will plead guilty to five counts of wire fraud and one count of tax fraud.

Churchville is also a party in a civil case brought by the Securities and Exchange Commission (“SEC”) in May 2015.

Between 2008 and 2011, Mr. Churchville invested approximately $18 million of client money in JER Receivables, although by June 2010 he had become aware that ClearPath had been defrauded by that company, according to the statement.

Instead of notifying his clients of the losses, Churchville,  paid them with money obtained from new investors, misappropriating around $21 million of investor funds in the process, the statement alleges. To help carry out his scheme, he told investors JER Receivables was producing high rates of return, according to the statement.

Recovery for Jean Walsh-Josephson Losses

If you were an investor of Jean Walsh-Josephson, please call 1-866-877-0201 for a free consultation concerning potential recovery for your losses.

broker in handcuffsJean A. Walsh-Josephson was a financial advisor for Thrivent, formerly Thrivent Financial for Lutherans.  A Winnebago County judge has ordered a two-week trial for this former Oshkosh, Wisconsin financial adviser who accused of stealing $4 million from her mostly elderly investment clients.

The trial for Walsh-Josephson is set for Feb. 20 through March 3, 2017. Judge Thomas Gritton ordered the trial this week, days after victims and their families gathered in court May 13 for what they were led to believe would be a plea and sentencing hearing.

Walsh-Josephson faces 28 counts of theft in a business setting of more than $10,000 each after authorities say she stole more than one million dollars from at least seven clients in Winnebago and Outagamie counties. She also faces felony forgery misdemeanor theft and obstructing an officer charges after authorities say she stole $400 from a client while acting as a third-party intermediary in a property dispute.

If convicted on all charges, she could face a maximum sentence of 287 ½ years in prison.

The question for investors is the question of why Thrivent did not detect this level of theft.  All firms have a duty to take reasonable steps to detect and prevent broker theft.

Jeffrey Pederson has handled numerous cases concerning the theft and outside activity of brokers and have helped investors obtain favorable judgments and settlements.  Please call for a free consultation.

Investigation of Jeffrey Risinger

If you were an investor with Jeffrey Risinger at any time or more recently with PIN Financial, please call 1-866-817-0201 (toll-free). 

NYSE pic 1Financial industry regulators have permantly barred Risinger, a Fishers broker alleged to have participated in a Ponzi scheme, from working in the financial brokerage industry thus prohibiting Risinger from ever again working in the securities industry in any capacity. The sanction follows  claims Risinger and two others operated a multimillion-dollar Ponzi scheme.

Risinger is also the subject of a civil suit filed by the U.S. Securities and Exchange Commission (SEC) concerning alleged fraudulent representations made to investors.  He has also recently been terminated from his employment at PIN Financial.

FINRA said its action resulted from Risinger’s refusal to provide on-the-record testimony related to the allegations. The case, which is ongoing, alleges the Risinger and his two accomplices raised $15 million from 80 investors in 2013 and 2014 to fund farm operating loans. When loans soured, the perpetrators repaid old investors with new investor money, the SEC said, creating a classic Ponzi scheme.

Carmel-based Veros Partners principal Matthew D. Haab and former stockbroker Tobin J. Senefeld are the other defendants.

Information for this post has come in part from the Indianapolis Business Journal.

Larry Werbel

Larry Werbel was indicted this week on charges that he participated in a scheme to defraud at least 100 investors of more than $15 million, federal prosecutors said.   If you believe you may have been a victim of Werbel please call toll-free 1-866-817-0201. 

Werbel, owner of Evolution Partners Wealth Management, and formerly of Summit Brokerage and LPL Financial was one of several brokers who recruited investors for shares of a shell company called VgTel Inc., with the false representation of high dividends, according to a news release from the U.S. Attorney’s Office for the Southern District of New York. In reality, the shares were being sold and bought by shell companies that the accused schemers owned in an effort to artificially inflate the price, the release states.

Prosecutors say of the $15 million invested, more than $9 million went into the pockets of Werbel and others involved in the scheme. Werbel found investors and pushed them to buy $3 million in shares for VgTel, prosecutors claim. In return, he received more than $300,000 in illegal payments.

The FBI arrested Werbel, 67, at his home in Solon, Ohio on Wednesday, January 6, 2016. He was released after appearing in front of Magistrate Judge Greg White in Cleveland. His bond is set at $100,000.

He is charged with conspiracy to commit securities fraud, securities fraud, conspiracy to commit wire fraud, wire fraud, investment adviser fraud and making false statements to federal officers.

Frederick Monroe of Voya and Capital Financial

Stock handcuffsIf you invested with stockbroker Frederick Monroe, formerly of Voyal and Capital Financial, please call 1-866-817-0201 for a free consultation.

Frederick Monroe of Queensbury, NY, and senior vice president financial advisor while formerly employed with Voya Financial and Capital Financial Planning, pleaded guilty to a multiple of financial offenses in state court Albany, NY.  His sentencing will be February 16, 2016.

Monroe is accused of running a Ponzi scheme where he would have investors draft checks to him personally purportedly for a series of retirement investments.  The funds would then be used to pay other investors and personal expenses of Monroe such as mortgage payments.

The criminal activity stretched from 2002 until May 2015.  He stole approximately $1 million from investors seeking to save money for their retirement.

The criminal complaint stated that Monroe “admitted that he did not reinvest the monies as promised, but instead used investor monies to return principal to earlier investors, to pay personal expenses and to maintain the social and professional lifestyle to which he became accustomed.”

The sentence for Monroe is anticipated to be between 3 and 16 years.

Our firm has help investors victimized by similar crimes obtain financial recovery.   Please call the number above for a free consultation.

 

 

Michael Donnelly of Coastal Equities

Stock handcuffs

If you have lost money with Michael Donnelly of Coastal Equities and/or Coastal Investment Advisors please call toll-free 1-866-817-0201 for a free consultation.

Michael Donnelly is a former stockbroker of Coastal Equities and former president of Coastal Investment Advisors Inc. in Wilmington, Del.  Donnelly admitted to defrauding 13 clients, many of whom were elderly, of almost $2 million over seven years from 2007 through August 2014.

Donnelly failed to invest the client funds he received. Instead, he used the money for business and personal expenses, such as rent, car payments, golf club memberships and his children’s private-school tuition.

He hid his scheme by providing clients false account statements. The SEC filed a civil complaint in federal district court in Philadelphia. Separately, the U.S. Attorney’s Office for the Eastern District of Pennsylvania filed criminal charges against Mr. Donnelly.

This matter is particularly egregious due to his targeting of elderly victims and his fiduciary status as an investment advisor.

While Donnelly agreed to pay restitution, we believe that the only way investors will see recovery is by contacted an attorney.  You may have avenues for recovery of which you may be unaware.