Jordan Chirico of Jefferies Financial Group is accused by the SEC of violating fiduciary duties by investing clients in a Ponzi-like scheme. The SEC asserts, in a complaint in August 2025, that Chirico invested in Water Station Management failed to disclosure conflicts of interests and he was aware “red flags” that should have alerted him to fraud at Water Station.
The SEC complaint, filed in the US District Court for the Southern District of New York, alleges that Chirico place his personal interests ahead of his clients’ and his employer. The allegations are that he personally made undisclosed loans to Water Station causing him to profit from recommendation this the fund he manage continue to invest into Water Station.
Further, Chirico knew that Water Station did not have the collateral for the investments, despite assertions otherwise by Water Station. Chirico increased the holdings of his employer in Water Station despite such knowledge.
Chirico, of Carmel, Indiana, has a long history in the financial services industry. He was with Leucadia Asset Management from 2022 through June 2024. Before that, Chirico worked for Baird and Credit Suisse.
The lure of this type of money is often too great even for fiduciaries. The action of Chirico is a warning to investors to stay vigilant. Jeffrey Pederson represents investors. This post is a comment on current events in the securities industry.
Recent Comments