Broker Theft

Advisor Lester Burroughs Pleads Guilty to Converting Client Funds – Investor Recovery

February 17, 2020 | by Staff Attorney

The law offices of Gana Weinstein LLP are currently investigating claims that advisor Lester Burroughs (Burroughs) is converted customer funds among other allegations. According to BrokerCheck records, Burroughs is formerly registered with The Financial Industry Regulatory Authority (FINRA) member firm Lincoln Investment. In addition, Burroughs disclosed 17 customer complaints. If you have been a victim of Burroughs’ alleged misconduct our firm may be able to assist you in recovering funds.

According to news sources, Burroughs is facing up to 20 years in prison after pleading guilty to misappropriating $575,000 in client assets. Burroughs waived his right to be indicted and entered the plea in U.S. District Court of Connecticut as part of a deal in which he agreed to pay the full $575,000 in restitution to the victims of his crimes. It was alleged that Burroughs defrauded three clients in a Ponzi scheme from about 2012 to 2019. In addition, the U.S. Securities and Exchange Commission (SEC) announced separate civil charges against Burroughs stating that he misappropriated $560,000 after telling clients he would invest their money in guaranteed interest contracts with guaranteed returns of 4% or 7%. However, the SEC found that Burroughs instead used the money to pay his own expenses and the return funds to other clients.

Our law firm has significant experience bringing cases on behalf of defrauded victims when their advisors engage in receiving loans from clients or selling securities sales through OBAs. The sale of unapproved investment products – is a practice known in the industry as “selling away” – a serious violation of the securities laws. In the industry the term selling away refers to when a financial advisor solicits investments in companies, promissory notes, or other securities that are not pre-approved by the broker’s affiliated firm. Sometimes those investments have some legitimacy but often times these types of investments can end up being Ponzi schemes or the advisor can be engaging in the conversion of funds.

Advisor Gerald Eaton Terminated Over Misappropriating Investor Funds – Investor Recovery

February 3, 2020 | by Staff Attorney

The law offices of Gana Weinstein LLP are currently investigating claims that advisor Gerald Eaton (Eaton) was terminated by his firm and then barred from the securities industry over allegations that he engaged in wrongful taking of customer funds among other allegations. According to BrokerCheck records, Eaton was formerly registered with The Financial Industry Regulatory Authority (FINRA) member firm Commonwealth Financial Network (CommonWealth Financial). If you have been a victim of Eaton’s alleged misconduct our firm may be able to assist you in recovering funds.

In November 2019 FINRA barred Eaton finding that Eaton consented to the sanction and findings that he failed to provide documents and information requested by FINRA in connection with its investigation. FINRA stated that in the Form U5, Eaton’s member firm stated that the reason for the termination was that he fraudulently facilitated distributions from clients’ accounts without their knowledge or consent or for their benefit. Commonwealth discharged Eaton in October 2019 for forgery and the wrongful taking of property.

According to Eaton’s publicly disclosed records the only outside business activities disclosed including The Heritage Financial Group and subleasing office space. It is unclear at this time whether FINRA’s allegations concern these entities.

Advisor Dain Stokes Accused Of Running An Investment Scam – Recovery Options

December 16, 2019 | by Staff Attorney

The law offices of Gana Weinstein LLP are currently investigating claims that advisor Dain Stokes (Stokes) was discharged by his employer after being accused of running an investment fraud scheme. According to BrokerCheck records, Stokes is formerly registered with The Financial Industry Regulatory Authority (FINRA) member firm LPL Financial LLC (LPL Financial). In addition, Stokes disclosed two regulatory complaints and four customer complaints. If you have been a victim of Stokes’ alleged misconduct our firm may be able to assist you in recovering funds.

On August 1, 2019 an investor reported to the Fremont Police Department that he had possibly been defrauded by Stokes related to an investment of two hundred one thousand dollars. The complaint alleges that the investment was for an alleged project in Africa purportedly involving popstar Taylor Swift. The victim provided copies of cancelled checks, unsecured promissory notes, and text messages to the Fremont Police Department that corroborated his complaint.

According to the complaint Stokes used fraudulent messages to continue to entice the investor including:

On November 29, 2018, Stokes is claimed to have wrote: “We are getting close, a week, maybe two, I just had a long talk with Taylor about it in the middle of the night lol.”
On May 8, 2019, Stokes is claimed to have wrote: “Taylor is meeting with Bill Gates and the rest of the sponsors who are paying out the commissions on May 20th To try in wrap things up, so we all get paid.”
On June 12, 2019, Stokes is claimed to have wrote: “Trump’s illegally locked my bank accounts, and I’m fighting it in the Federal Bank Commission in the New Hampshire AG’s Office. Taylor is releasing a new song on Instagram in 30 minutes and I’m promoting it.”

In August 2019 LPL Financial discharged Stokes in connection with State of New Hampshire suspension of investment adviser agent and broker-dealer representative license.

Advisor David Rockwell Accused of Misappropriating Client Funds – Recovery Options

November 23, 2019 | by Staff Attorney

The law offices of Gana Weinstein LLP are currently investigating claims that advisor David Rockwell (Rockwell) was discharged by his employer after being accused of misappropriating client funds. According to BrokerCheck records, Rockwell is formerly registered with The Financial Industry Regulatory Authority (FINRA) member firm Cetera Advisor Networks LLC (Cetera). In addition, Rockwell disclosed two customer complaints related to misappropriating funds. If you have been a victim of Rockwell’s alleged misconduct our firm may be able to assist you in recovering funds.

Rockwell also discloses multiple criminal events, firm terminations, and one regulatory event. In May 2013 Rockwell discloses a guilty plea for assault and battery along with operating while intoxicated. Then in November 2018 Rockwell was accused of aggravated stalking.

In July 2015 the State of Florida accused Rockwell of making material false statement on the application for registration and denied his securities registration in the state.

In June 2019 a customer complained that Rockwell violated the securities laws by alleging that Rockwell misappropriated money from his investment accounts to invest in a private security related to a company owned by Rockwell. The claim alleges $500,000 in damages and settled for $215,000.

In July 2019 a customer complained that Rockwell violated the securities laws by alleging that Rockwell was involved in forgery and fraud regarding their accounts. The claim alleges $700,000 in damages and is currently pending.

Advisor Frederick Stow Discharged Over Client Fund Misappropriation Claims

October 12, 2019 | by Staff Attorney

The law offices of Gana Weinstein LLP are currently investigating claims that advisor Frederick Stow (Stow) was discharged by his employer after being accused of misappropriating client funds. According to BrokerCheck records, Stow is formerly registered with The Financial Industry Regulatory Authority (FINRA) member firm Raymond James & Associates, Inc. (Raymond James). In addition, Stow disclosed two customer complaints related to misappropriating funds. If you have been a victim of Stow’s alleged misconduct our firm may be able to assist you in recovering funds.

In May 2019 Stow was discharged by Raymond James after the firm claimed that Stow misappropriated funds from customer accounts.

Thereafter, in June 2019 a customer filed a complaint alleging that Stow violated the securities laws by misappropriating funds from 2013 through 2019. The claim alleges $911,500 in damages and is currently pending.

In July 2019 a customer filed a complaint alleging that Stow violated the securities laws by misappropriating funds from 2015 through 2019. The claim alleges $911,500 in damages and is currently pending.

Benjamin Bourgeois Terminated Over Converting Client Funds – Investor Recovery

July 1, 2019 | by Staff Attorney

The law offices of Gana Weinstein LLP are currently investigating claims that advisor Benjamin Bourgeois (Bourgeois) has taken funds from clients and engaged in certain business activities not approved by his brokerage firm. Bourgeois, formerly registered with Commonwealth Financial Network (Commonwealth Financial) out of Metairie, Louisiana has been barred by The Financial Industry Regulatory Authority (FINRA) for failing to answer questions concerning his conduct. In addition, Bourgeois disclosed at least three customer complaints and one termination for cause.

In May 2019 FINRA found that Bourgeois consented to sanctions and findings that he failed to produce documents and information requested by FINRA during the course of an investigation into allegations reported that he borrowed money from a customer, converted customer funds, and committed fraud.

In April 2019 a customer alleged that Bourgeois engaged in conversion of customer funds made by personal check purportedly for investment purposes; employing devices, schemes or artifices to defraud; making untrue statements of material facts; fraud beginning around 2016. The claim alleged $519,500 in damages and is currently pending.

Bourgeois’ CRD disclosures states that Bourgeois has an outside business activity through which he engages in fixed insurance sales.

Chris Kubiak Arrested For Misappropriating Client Funds – Investor Recovery

May 28, 2019 | by Staff Attorney

The law offices of Gana Weinstein LLP are currently investigating multiple claims that advisor Chris Kubiak (Kubiak) has engaged in a misappropriation scheme. Kubiak, formerly registered with Calton & Associates, Inc. (Calton) and American Global Wealth Management, Inc. (American Global Wealth) operating out of McDonough, Georgia and Brookfield, Wisconsin respectively has been accused by customers and the Department of Justice (DOJ) of engaging in securities fraud and misappropriating funds.

In October 2018 FINRA barred Kubiak after he consented to the sanction and to the entry of findings that he converted customer funds. FINRA found that four customers, including three seniors, gave funds to Kubiak totaling approximately $270,000 to invest on their behalf. FINRA found that instead Kubiak deposited the funds into his personal bank account and then used them for his own personal use such as gambling and to paying for personal medical bills.

In March 2019 the DOJ announced charges against Kubiak include seven counts of wire and mail fraud concerning Kubiak’s scheme where he arranged to make withdrawals or to liquidate the investment accounts of his elderly clients. The DOJ indictment identifies a total of six clients from whom he is alleged to have wrongfully misappropriated approximately $370,000 over a five year period.

Robert High Accused of Misappropriating Funds – Investor Recovery

May 20, 2019 | by Staff Attorney

The law offices of Gana Weinstein LLP are currently investigating multiple claims that advisor Robert High (High) has engaged in a misappropriation scheme. High, formerly registered with First Financial Equity Corporation (First Financial) and operating out of Scottsdale, Arizona, has been accused by a customer of engaging in securities fraud and misappropriating funds.

In February 2019 the Federal Bureau of Investigation (FBI) opened an investigation into High for alleged misappropriation of funds and forgery. Shortly thereafter First Financial terminated High claiming that he was in violation of firm’s policies. In March 2019 a client filed a complaint alleging that High misappropriated funds causing $146,000 in funds. The claim is currently pending.

Also in March 2019, FINRA suspended High for failing to respond to the regulator’s requests for documents and information. If High continues to fail to respond he will be barred from the securities industry.

Former Advisor Kristian Gaudet Criminally Charged For Stealing Client Funds

April 2, 2019 | by Staff Attorney

According to BrokerCheck records kept by The Financial Industry Regulatory Authority (FINRA) former advisor Kristian Gaudet (Gaudet), formerly associated with Ameritas Investment Corp. (Ameritas) in Cut Off, Louisiana has been terminated by the firm for using client funds for personal use. Thereafter, in January 2019, Gaudet consented to the sanction and findings that he refused to appear for and provide FINRA on-the-record testimony concerning the internal investigation by Ameritas that Gaudet was found to have utilized client funds for personal use. Accordingly, Gaudet was barred by FINRA from the securities industry.

According to newsources, Gaudet arrested for stealing nearly $1 million from his clients. Gaudet was a former vice president of the Greater Lafourche Port Commission and owner of Kris Gaudet Insurance and Financial Services. Authorities received a complaint form a couple that found issues with a $350,000 investment made to “Winston Financial” in 2012. Authorities claim that the money was used for purposes other than the investment purposes for which it was intended. Authorities also accused Gaudet of using funds received in May from another couple to buy a home in Larose. Gaudet has been accused of frequently using money he received from investors for personal gain including using money clients paid for insurance to buy real estate.

Advisor William Hightower Indicted On Charges of Securities Fraud – Investor Recovery Options

December 15, 2018 | by Staff Attorney

According to the Department of Justice (DOJ) William Hightower, a 60-year-old resident of Bellaire was charged with a 13-count indictment charging him with wire fraud, mail fraud and money laundering. The charges claim that he was the president of Hightower Capital Group (HCG) founded it in 2010 and held himself out to be an investment advisor. The charges outline that Hightower took money from clients from 2013-2018 and made false promises as to their investments when in reality he was conducting a Ponzi Scheme.

Hightower would allegedly tell investors their money was being invested in various projects, such as restaurants, movies, insurance contracts. However, DOJ alleges that none of these projects existed and that instead Hightower received more than $10 million from investors and used investor funds to pay earlier investors in a Ponzi Scheme and to pay himself and fund his lifestyle.

The DOJ also charges that Hightower also concealed from his clients that the Financial Industry Regulatory Authority (FINRA) had barred him in October 2015. The DOJ stated that if convicted, Hightower faces up to 20 years in federal prison for each count as well as possible fines.

According to BrokerCheck records kept by FINRA Hightower has six customer complaints – most of which relate to the alleged securities fraud activities.