Articles Posted in Securities Fraud

The investment world can be a scary place, especially for inexperienced investors. Meanwhile, many savvy investors fall into the dangerous trap of believing they are safe. However, the fact is that with volatile markets comes an increased opportunity for criminals to take advantage of even the savviest of investors. One couple — we’ll call them…

“Insider trading” is one of the most widely-recognizable terms in the complex financial industry — but it is one that is often misunderstood, as well. Though some insider trading is a form of broker misconduct, it is also frequently committed by firms’ top management. An article published on August 18, 2011, “Insider Trading: CNBC Explains,”…

John A. “Jack” Grant, a former stockbroker, was barred from associating with investment advisers, brokers and dealers in 1988, following an action that accused him of selling unregistered securities and misappropriated funds totaling $5,500,000. Grant, however, did not withdrawal from the securities business and continued advising small business and individuals on their investments and management…

Complaints were filed with the U.S. Attorney’s Office and the FBI in connection to a group of 30 New Zealand investors who lost nearly $7 million. The investors claim to have lost $6.7 million investing with Tony Lusby. Lusby, a Hamilton, New Zealand, man who is now living in Panama, admits that the money is…

Galleon Group LLC ex-hedge fund trader Craig Drimal pleaded guilty to six counts of conspiracy and securities fraud in April. He has now been sentenced to five-and-a-half years in prison. Drimal admitted to insider trading based on information from lawyers at Ropes & Gray LLP, a firm based in Boston. The transactions involved Axcan Pharma…

Ryan Kimura, a former Morgan Stanley Dean Witter stockbroker in Honolulu, Hawaii, was sentenced to 57 months in prison. In addition, he will pay $1.5 million to Morgan Stanley and over $500,000 plus interest to the Internal Revenue Service. Payment to the IRS will cover tax losses from 2000-2007. Kimura was charged with money laundering,…

Former Nebraska City brokers Rebecca Engle and Brian Schuster were sent to prison for bilking investors out of more than $20 million — an amount which is, according to the Nebraska Department of Banking and Finance investigation supervisor Thomas Sindelar, the biggest securities fraud case in history of the state. The broker misconduct of Engle…

Carlo Chiaese, an investment adviser, has been sentenced to 58 months in prison and must pay restitution totaling $2.5 million for broker misconduct including failure to invest and falsified documentation. Rather than investing his client’s money, Chiaese used the money to pay for his extravagant lifestyle. Purchases included leases on a Land Rover, an Audi…

Though investors who have already been “burned” by stock broker fraud or broker misconduct may have a perfectly understandable fear of getting back into the securities game, there are ways investors can help protect themselves in the future. One of the most significant protective measures an investor can take is to look into the background…

A new investor alert from the Financial Industry Regulatory Authority cautioned investors about scams related to investment in gold stocks. The alert, titled, “’Gold’ Stocks—Some Investments Mine Your Pocketbook,” provides information on legitimate gold investments and how to invest in them as well as dangers of illegitimate gold investments. The record price of gold bullion…