In a news release, the Colorado Securities Division stated that an LPL Securities internal investigation concluded that Ms. Camaro had caused checks to be drawn on customer accounts and deposited in an account she controlled, and that she was using the funds for personal expenditures.

In August 23, 2017, the Securities and Exchange Commission (“SEC”) filed a civil complaint (the “Complaint”) against Ms. Camarco (“Camarco”) in federal court in Colorado. As alleged in the Complaint, Ms. Camarco’s fraudulent scheme involving misappropriation of client funds dates back to approximately 2004 and continued through at least August 2017.

According to publicly available information through FINRA’s BrokerCheck, Sonya Camarco (a/k/a Sonia D. Fatchett, Sonya D. Fatchett, Sonya D. Fatchett-Camarco) (CRD# 2427529) entered the securities industry in 1993. Since then, she has been affiliated with the following firms: Merrill Lynch (CRD# 7691) (1993-2000), Morgan Stanley (CRD# 7556) (2000-2004), and most recently – LPL (CRD# 6413) (2004-2017). Recent news reports indicate that LPL terminated Ms. Camarco’s employment on August 9, 2017, after uncovering a series of suspicious transfers.

The allegations in the Complaint suggest that Ms. Camarco, an LPL registered representative who operated her own affiliated advisory firm, Camarco Investments, cashed out clients’ investments without their consent. Further, as alleged in the Complaint, Ms. Camarco proceeded to funnel these client funds into ‘C Investments,’ an entity owned and controlled by Camarco. The Complaint alleges that misappropriated funds were used by Camarco for such unauthorized purposes as making personal mortgage payments, paying off credit cards (in an amount in excess of $462,000), and to fund the purchase of a home held in a trust Camarco created.

According to the SEC’s Complaint, LPL (a Boston, MA based brokerage firm dually registered with the SEC as a broker-dealer and investment adviser) commenced an investigation into Camarco’s dealings on or about July 27, 2017. The investigation was initiated after one of Camarco’s clients requested that LPL look into the matter of a check drawn on the client’s account and made payable to ‘C Investments.’ During the course of its investigation, LPL discovered several similar types of suspicious transactions involving Camarco’s clients occurring from 2004-2017.

The Complaint alleges that Camarco’s scheme affected approximately 15 clients and involves in excess of $2 million. Further, the Complaint alleges that when clients asked about withdrawals from their accounts, Ms. Camarco informed these clients that C Investments was a type of outside investment made on their behalf.

Ms. Camarco was suspended by FINRA on October 10, 2017 from associating with any FINRA member firm in any capacity, pursuant to FINRA Rule 9952, and in accordance with FINRA’s Notice of Suspension letter dated September 13, 2017. In the event that Ms. Camarco fails to request termination of the suspension within three months from the date of the Notice of Suspension, she will then automatically be barred from the securities industry on December 18, 2017.

The attorneys at Law Office of Christopher J. Gray, P.C. have significant experience in recovering funds on behalf of investors who have fallen victim to perpetrators of financial frauds, including Ponzi schemes. Investors with questions about a possible legal claim may contact our office at (866) 966-9598 or newcases@investorlawyers.net for a no-cost, confidential consultation.

With respect to the Survey, 36 regulators from member organizations provided formal responses. Among the Survey data gathered from the Respondents were the following questions and answers:

• Would you say there is greater awareness of the investment fraud or exploitation risks seniors face now than there was a year ago?
  • 97% responded Yes.
• In the past year, has your agency seen an increase or decrease in cases or complaints involving senior financial fraud or exploitation?
  • 29% responded that they have seen an increase in senior financial exploitation (69% responded that the number of cases or complaints was about the same).
• In your opinion, are broker-dealers and investment advisers doing enough to prevent senior fraud?
  • 75% responded No.
• Which generation do you feel is most vulnerable to financial fraud?
  • 82% responded that the Silent Generation (those individuals in their 70’s and 80’s) were most at risk of financial exploitation or elder abuse.
• In your opinion, do you feel most cases of senior financial fraud or exploitation go undetected until too late?
  • More than 95% responded Yes.

The Survey is troubling and points to a growing, but as yet, inadequately addressed problem. Even with the increased recognition of elder financial abuse and senior financial exploitation as demonstrated by NASAA’s Survey, the statistics nevertheless paint a gloomy picture and call for increased regulatory action and enforcement to protect senior investors from unscrupulous and predatory individuals. Of great concern is the Survey’s conclusion that most cases of elder financial abuse or senior exploitation go undetected until too late. Furthermore, the Survey suggests that the brokerage industry has far more work to do in order to ensure that senior investors are properly protected.

The attorneys at Law Office of Christopher J. Gray, P.C. have significant experience in representing senior investors who have suffered losses due to financial fraud, in addition to losses related to the misconduct or malfeasance of brokerage firms and their associated wealth advisers or brokers. Investors may be able to recover their losses in FINRA arbitration, and in some instances, through litigation. Investors with questions about their legal rights and options may contact a securities arbitration lawyer at Law Office of Christopher J. Gray, P.C. at (866) 966-9598 or via email at newcases@investorlawyers.net for a no-cost, confidential consultation.