According to publicly available records via FINRA BrokerCheck, former Securities America, Inc. (CRD# 10205, hereinafter “Securities America”) financial advisor Hector A. May (CRD# 323779, hereinafter “Hector May”) is currently under investigation by the U.S. Department of Justice (DOJ) and the Attorney for the Southern District of New York concerning allegations of investment fraud. Specifically, certain former customers of Hector May have recently come forward, alleging that Mr. May solicited investments in purported “tax-free” corporate bonds.
A long-time resident of Rockland County, New York, Hector May maintained an office in New City, New York, from which he conducted business through his registered investment advisory (RIA) firm: Executive Compensation Planners, Inc. (CRD# 116375) (“ECPI”). Upon information and belief, Hector May’s ECPI clientele included investors in the following states: New York, Connecticut, New Jersey, Pennsylvania, Maryland, Virginia, North Carolina, and Florida. Publicly available information indicates that ECPI was formed as a New York corporation in December 1982. SEC records reflect that Mr. May’s registration with the securities regulator was terminated on May 1, 2018.
Hector May was affiliated with the independent broker-dealer Securities America from 1994 until March 2018. On or about March 9, 2018, Securities America reportedly discharged Mr. May due to allegations concerning “misappropriation of client assets.” Subsequently, on June 6, 2018, the United States Attorney for the Southern District of New York implemented an asset freeze pursuant to a Restraining Order against Mr. May and his wife, Sonia May, with their consent. Through the government’s restraining order, numerous assets have been frozen, including ECPI assets, as well as various bank and brokerage accounts, pension and social security benefits, as well as real assets including the May’s Orangeburg residence.
Independent broker-dealers like Securities America have a duty to ensure that their registered representatives and investment advisors are adequately supervised, a duty which includes monitoring their advisors’ activities to ensure that no misconduct or fraudulent activity is permitted. Unfortunately, in some instances, independent advisors who work remotely under the supervision of brokerage firms are able to engage in a pattern and practice of misconduct. In those instances where firms fail to adequately supervise their financial advisors, they may be held liable for losses sustained by investors.
Attorneys at Law Office of Christopher J. Gray, P.C. have successfully resolved a number of disputes on behalf of investors, including cases involving alleged stockbroker misconduct. Investors may contact Law Office of Christopher J. Gray, P.C. by telephone at (866) 966-9598, or by e-mail at firstname.lastname@example.org for a no-cost, confidential consultation.