Parkland Securities adviser, Keith Ashley, 48, is accused of incapacitating and murdering an investor associated with Ashley’s Ponzi-type fraud. Authorities arrested Ashley on November 4, 2020, on wire fraud charges. These charges that stem from an FBI investigation, according to a statement by the Carrollton Police Department. Carrollton is a suburb north of Dallas.
The victim, James “Jim” Seegan, 62, an investor of Ashley’s. He was found dead of a gunshot wound to the head by his wife when she returned to their home on the evening of Feb. 19, 2020. Next to Seegan was a typed suicide note.
Over the course of a nine-month investigation, detectives found evidence that Ashley incapacitated, then murdered his investor to gain control of Seegan’s finances.
“Ashley was a friend and financial adviser of Seegan’s who would visit the Seegan home periodically,” according to the police. “During the course of the investigation, detectives also identified several other victims of a Ponzi scheme Ashley orchestrated.”
The fraud occurred while Ashley was a registered representative, a securities broker, of Parkland Securities. Parkland, formerly known as Sammons Securities, terminated him on October 27, 2020. The reason for the termination was “undisclosed outside business activity.”
Brokers are required to identify all outside business activity to their brokerage firms. Outside business activity of a broker is an area of significant concern. Brokers often use their status as a broker to engender trust of the investing public. This trust leads the investors to believe the investment opportunity offered by the broker to be legitimate.
There are very few reasons for a broker to not disclose outside business activities to his brokerage. Failing to disclose outside business activities allows a broker to perpetuate Ponzi-type frauds. The firm is unable to conduct due diligence to prevent the sale of investments with weak financials or that have no legitimate business operations.
A brokerage firm is still required to monitor for such activities though the activities may be undisclosed. Audits and other reasonable measures are required to identify such activities. A firm cannot sit content with a broker’s representation of not engaging in outside business activities.
Victims of the Ashley securities fraud should call 1-866-817-0201 for a free and confidential consultation.