Securities Arbitration Lawyers BlogCharges Filed Against John Maccoll For $4M Ponzi Scheme On Elderly Investors
In August, we told you about John Cochran Maccoll (CRD #839441) who was barred by FINRA after multiple fraud allegations. Since then, there have been two additional developments.
Another customer has come forward and filed a complaint on 08/16/2018, alleging misappropriation of client funds from 10/01/2015 through 08/16/2018. The case was settled for $158,163.76. No additional information is available. This case is in addition to the previous cases we described in the earlier blog post.
On 8/9/2018, The U.S. Attorney’s Office for the Eastern District of Michigan filed criminal charges against Maccoll in an action initiated by the United States Securities and Exchange Commission (SEC.) In it, the SEC detailed how Maccoll persuaded investors, mostly elderly, into investing in what he described as a “highly sought after private fund investment.” These investors, most of them retired, used their retirement accounts to fund their alleged investments. In return, Maccoll promised a 20% return on investment, as well as diversifying their portfolios and better growth potential than their current investment portfolios.
According to CRD records, Malis has five disclosures on his record, all customer disputes. The most recent was filed on 12/7/2017, alleging unsuitable investments and that he never discussed any transactions with the client during the time period 2/13/2006 through 12/31/2016. This claim was denied.
His most recent disclosure was filed on 6/25/2018. This customer disclosure is currently pending, and includes allegations of “unsuitable investments, misrepresentations, and omission of material risks, in connection with the sale of various investments.” The client has requested damages of $231,244.71. Martinsen denies the allegations.
Morrissett is the subject of four disclosures, the most recent of which was filed on 4/5/2018. The claimants allege that Morrissett “misrepresented” two hedge funds in 2013 and 2015, and that the information provided on the two alternative investments was “misleading.” The clients have requested damages of $2,300,000. This case is currently pending.
Nixon has a total of four disclosures in his record, the most recent a customer dispute filed on 7/9/2018. The claimants allege that from 2013 to 2018, Nixon violated both the Florida Securities Act and the Virginia Securities Act. They also allege that he committed common law and securities fraud and breached his fiduciary duty, and completely misrepresented multiple unsuitable securities and investments. Additional allegations include failure to supervise on the part of the firm (Paulson Investment.) Claimants are requesting damages in the amount of $3,000,000. The case is currently pending.
Another still-pending dispute was filed on 8/24/2017, and will be in securities arbitration. The client lists multiple allegations, including elder abuse, financial exploitation, breach of fiduciary duty, excessive trading and misrepresentation. The damages requested are listed at $9,500,000.00. However the claim has no damage amount listed, and the final sum will be determined in arbitration.
Wahby has one disclosure in her record, filed on 6/12/018. A client who invested in Future Income Payments, LLC (“FIP”) on Wahby’s recommendation, filed this customer dispute. This investment was supposed to provide the client with a guaranteed fixed amount and protect the client’s investments. However, the client alleges, she has received no income and her funds were no longer available. The client requested damages of $39,460.00 and the case was settled for $40,000.
Scott Silver recently spoke with Jennifer Cefalu of 
Liberty Partners Financial Services, LLC (CRD #130390) of Mount Pleasant, SC, and Milestone Financial Services, Inc. (CRD #43295) of Bohemia, NY. His first employer, Seaboard Securities, Inc. (CRD #755) of Florham Park, NJ, was expelled by FINRA in 2011. He has been in the industry since 1998.