Customers of Ronald J. Roach (“Roach”), formerly of Securities America, may be able to recover investment losses if Roach solicited their investments in a company known as DC Solar or otherwise provided unsuitable investment advice.
The Securities and Exchange Commission (SEC) has barred Roach for his role in promoting DC Solar, which this SEC alleges operated as a Ponzi scheme that defrauded investors of about $1 billion. The SEC bar order is accessible here. roach barred
In October, Mr. Roach also reportedly pleaded guilty to fraud and securities violations stemming from the sale and leaseback of mobile solar electrical generators. Roach awaits sentencing and reportedly facts as much as 10 years in prison.
A Ponzi scheme is a classic con game in which early investors in the scheme are paid funds from later investors, thus creating the illusion of legitimacy and solvency. Ponzi schemes are often doomed to failure once the perpetrator of the scheme can no longer pay out investors through newly raised money.
Roach was associated with broker dealer Securities America in Walnut Creek, California from 2009 until 2019. Roach was terminated by Securities America on Oct. 23, 2019 after pleading guilty to criminal charges that he falsified DC Solar’s financial statements.
Brokerage firms may be held liable for the activities of registered representatives in connection with alleged Ponzi schemes in certain circumstances, including when a financial advisor engages in the impermissible sale of unregistered securities to investors. This practice, known as ‘selling away,’ is not allowed under federal and state securities law, and is a violation of applicable FINRA rules. Brokerage firms also have an affirmative obligation to ensure that their registered representatives are adequately supervised. Brokerage firms must also take reasonable steps to ensure that their financial advisors follow all applicable securities rules and regulations, in addition to adhering to internal policies and procedures. In instances when brokerage firms fail to adequately supervise their registered representatives, they may be held liable for losses sustained by investors.
Investors who have suffered losses in connection with DC Solar may be able to recover investment losses in FINRA arbitration in certain circumstances. Investors may contact Law Office of Christopher J. Gray, P.C. at (866) 966-9598 or email@example.com for a no-cost, confidential consultation. Attorneys at the firm are admitted in New York, New Jersey, Wisconsin and various federal courts around the country, and handle cases nationwide (in cooperation with attorneys located in those states if required by applicable rules).