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Articles Tagged with Cornelius Peterson

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In September, we told you about Morgan Stanley brokers James Polese and 29-year-old Cornelius Peterson, who were found guilty of financial charges ranging from conspiracy to aggravated identity theft. They have both been sentenced in the case.

How to Report Elder Financial Fraud on elderfinancialfraudattorneys.comJames Polese has been sentenced to 60 months (five years) in prison after pleading guilty to one count of conspiracy, one count of investment adviser fraud and eight counts of bank fraud as well as a charge of aggravated identity theft. The government originally requested 75 months, and the federal guidelines indicate a minimum sentence of 87 months. Polese’s attorney argued for a shorter sentence of 40 months.

Polese was ordered to pay $462,000 in restitution plus a $30,000 fine. After his release from prison, he will be supervised for three years. He will be restricted from working in financial services, and prohibited from drinking alcohol beyond a blood alcohol content (BAC) of 0.10. The judge recognized Polese’s work towards rehabilitation, which included speaking with two ministers who offered letters of support.

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Silver Law Group is investigating claims against former Boston, Massachusetts-based Morgan Stanley brokers James Polese (CRD# 2636427) and Cornelius Peterson (CRD# 5769919) after FINRA barred both of them for allegedly stealing $450,000 from an elderly client.

Both Boston, Massachusetts brokers were charged by the Securities and Exchange Commission (the “SEC”) in January 2018 and agreed to plead guilty to the charges conspiracy, advisor fraud and bank fraud.

The SEC alleges in its complaint that Polese and Peterson misappropriated money from their Morgan Stanley customers starting in 2014. According to the SEC, Polese and Peterson fraudulently misappropriated $350,000 in March 2016 from an elderly customer. Polese and Peterson used a portion of the money to make investments in their own names, and directed a larger portion to Polese’s personal bank account. Then, according to the SEC, from March through May 2017, Polese made numerous unauthorized transactions from the same elderly customer’s account totaling approximately $93,000 to pay Polese’s credit card and college tuition expenses for Polese’s children.

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Silver Law Group is currently investigating Boston, MA and New York, NY based broker Cornelius Peterson regarding complaints pertaining to failure to provide due diligence to investor clients, misappropriation of client funds and misrepresentation.

https://www.silverlaw.com/blog/wp-content/uploads/2017/07/Philip-Grasso-Jr.-Barred-by-FINRA-Due-to-Allegations-of-Elder-Fraud-300x221-300x221.jpgBased on FINRA’s BrokerCheck report on Peterson, a complaint was filed on September 1, 2017 alleging that Peterson provided misleading information to investor clients during his employment at Morgan Stanley Smith Barney. In 2016, Peterson and his colleague James S. Polese were both charged with allegations relating to stealing upwards of $450,000 from one of their elderly clients. The allegations include misappropriating at least $350,000 of client’s funds by using $100,000 of the funds to make investments in their own names and directing the remaining $250,000 to their own personal bank accounts. In addition, several unauthorized withdrawals from the client’s account were made that totaled $93,000. Thus far, Peterson has a permanent suspension and the current charge is still pending.

Peterson was previously employed at Morgan Stanley Smith Barney from 2011 to 2017 and St. Lawrence University from 2007 to 2011.

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