Miami Broker charged with Defrauding Retired Teachers

Williamson Accused of Spending Investors’ Money on Personal Expenses

These individuals dedicated their lives to improving the lives of others. Some spent their days teaching in the school system. Some spent their days and nights making neighborhoods safer for the community. And they all believed that when they retired, their safe investment choices would allow them a comfortable retirement.

Unfortunately, their investment adviser had other plans for their money.

According to a June 1, 2015 SEC press release, the SEC charged Miami-based investment adviser Phil Donnahue Williamson with siphoning money from his investment fund and defrauding investors – investors that include the teachers, law enforcement officers and public servants mentioned above.

How did Williamson allegedly lure investors into his Ponzi scheme? He led them to believe that their funds would be invested in Sterling Investment Fund – a fund that he managed and purportedly invested in mortgages and properties in Florida and Georgia. He led them to believe that there was no risk involved and that they could expect to receive annual returns of 8 to 12 percent. He led them to believe their investments were performing by creating and sending fictitious valuations to investors. Then he took their retirement savings and spent the money as if it were his own.

According to the release, on the same day that a retired Miami-Dade schoolteacher and church pastor invested $125,000 in the fund, Williamson transferred $10,000 to himself and paid personal expenses, including a payment to BMW. He later transferred himself another $24,000 after paying other fund investors $24,400 in purported distributions.

In addition to settling the SEC charges against him and being liable for $748,050.01 in disgorgement (the payback of illegal or unethically obtained funds), Williamson is permanently barred from the securities industry, subject to court approval. He is also charged with criminal charges by the U.S. Attorney’s Office for the Southern District of Florida.

As an investor, what makes you different from the teachers, officers and pastors who fell victim to Williamson’s Ponzi scheme? Nothing. You have the same legal rights and you should understand what they are.

If you’re an investor who feels your broker has acted inappropriately and you have incurred a financial loss, all is not lost. A knowledgeable securities attorney may be able to help you recover financial losses incurred due to such behavior. The key is to select an experienced securities attorney well versed in securities arbitration, and one with a strong track record in successfully recovering client losses.

The attorneys at Silver Law Group represent investors nationwide and are committed to helping investors recover investment losses through stockbroker misconduct. Our consultations are free and the firm is compensated only when we are successful in recovery. Contact us today to discuss your rights as an investor in greater detail.