A former Irvine financial advisor faces charges of securities fraud. The Securities and Exchange Commission barred the man after he failed to respond to their inquiries. The man currently has three complaints pending against him. According to the SEC, the man used client funds to pay for his personal expenses, as well as luxury items. He also used the funds to pay staff members and make home improvements.
Investigators say that more than 2 dozen clients invested their funds with the man over a period of four years. Initially, family members of the man tipped regulators to suspicious activity on their accounts. FINRA regulators inquired into the activity, but the man did not respond to the agency’s questions. They barred the man from offering financial services in September 2016.
The man and his Chief Operating Officer directed client funds from a real estate investment vehicle that they had previously promoted. The men told investors that the fund would be used to secure and flip distressed residential real estate. They also told investors that their compensation would be capped at a specific amount. Instead, the men transferred most of the investor funds to their personal accounts.
The trust initially purchased and resold a handful of California properties. Instead of returning the profits to the investment fund, the men transferred the money to themselves. The men jointly owned a construction firm, which was paid to make improvement to the men’s homes. Most investors received no return, and many lost their principal investments.
The SEC has filed two counts of securities fraud and a single count of operating an unregistered broker-dealer against the man. The COO also faces a single count of securities fraud and one count of aiding and abetting securities fraud. Federal authorities have not yet filed criminal charges in the case.
Los Angeles securities fraud lawyer
When you face securities fraud charges, hire an experienced securities fraud lawyer like Robert Helfend. Mr. Helfend has more than 30 years of experience in criminal courtrooms. He takes cases in both federal and state courts.
His first priority will be to get the charges against you reduced or dropped. When that’s not a possibility, he will work aggressively to get the best possible outcome for your case. Don’t attempt to defend yourself in a federal prosecution. Instead, contact Robert Helfend or call toll-free at (800) 834-6434, (310) 456-3317, (818) 591-2809 or (805) 273-5611 for an immediate consultation on your Los Angeles County securities fraud case.
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