Investor Lawyers Blog
Victims of Elliot Kravitz, an LPL Financial Corp. independent client investment representative, are seeking the help of investment fraud lawyers in recovering their losses. Kravitz pleaded guilty recently to one count of wire fraud, according to the Cincinnati Business Courier. The wire fraud was in connection with an investment scheme. In this scheme, nine of Kravitz’ customers were defrauded out of over $2 million.
Kravitz sold securities through LPL Financial Corp., which was formerly Waterstone Financial Corp., according to the plea agreement. In accordance with Kravitz’ recommendation, a client pulled money out of the stock market in order to invest in a REIT, or real estate investment trust, in July 2007. In order to gain permission to move the money, Kravitz had the client sign a distribution form. However, Kravitz placed the money in an account under his control instead of investing it in the REIT. Kravitz then made 12 additional withdrawals from the client’s account, totaling $713,765. The client then received a year-end account portfolio statement from Kravitz that listed the fake REIT. Allegedly, Kravitz diverted funds from eight other clients as well, amounting to approximately $1.12 million, for personal use.
According to securities arbitration lawyers, a firm may still be held responsible for investment losses if it can be proved that they were negligent in the supervision of their brokers, even if the broker or advisor was conducting business without their knowledge. Therefore, victims of Kravitz’ fraud may be able to recover losses with the help of an investment fraud lawyer, through securities arbitration against LPL Financial.
Kravitz is scheduled for sentencing on August 23. He could receive as many as 20 years in prison and a fine as much as $250,000. Depending on the judge’s decision, Kravitz may also be ordered to pay over $2 million in restitution.
If you have suffered losses as a result of investments made with Elliot Kravitz, you may be able to recover losses through securities arbitration. To find out more about your legal rights and options, contact a securities arbitration lawyer at The Law Office of Christopher J. Gray at (866) 966-9598 for a no-cost, confidential consultation.