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Articles Tagged with Misappropriation

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.

The SEC Has Proposed New Regulations for Fiduciaries on silverlaw.comOn 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.

Martin Waldman Subject of a Securities Arbitration Claim on silverlaw.comSilver Law Group is investigation former Avondale, Arizona-based broker Rennie M. Roach (CRD# 4482798) after his employing firm, PFS Investments Inc. (CRD# 10111), permitted him to resign and FINRA subsequently barred him from the industry.

In December 2015, PFS permitted Roach to resign while the firm conducted an internal review regarding allegations of borrowing and misappropriating client funds.  Five months later in May 2016, FINRA barred Roach after he failed to respond to FINRA request for more information.

According to Roach’s FINRA BrokerCheck report, he had been in the securities industry for 11 years and employed by PFS throughout.  He currently has one customer dispute pending that alleges Roach misrepresented the features of variable annuity contracts he recommended his clients purchase.  Additionally, Roach has 14 judgment/liens on his BrokerCheck report, some of which are tax liens and others civil.

Silver Law Group is investigating former New Jersey-based Morgan Stanley (CRD# 149777) broker Barry F. Connell (CRD# 3070984) over SEC allegations that he stole money from his customers.

According to the SEC complaint, Connell misappropriated approximately $5 million from Morgan Stanley clients from December 2015 through November 2016.  Allegedly, Connell carried out the scheme primarily by moving funds between certain client accounts and issuing wire transfers and checks from the accounts to third parties for his benefit.  Over the course of approximately eleven (11) months, Connell made 100 unauthorized transactions, according to the SEC complaint.

According to Connell’s FINRA BrokerCheck report, Morgan Stanley discharged Connell in November 2016 after the allegations surfaced.

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