SEC Charges Financial Advisor with Fraud

The SEC announced fraud charges against a financial advisor accused of stealing from customers to fund his own brokerage accounts, and of squandering the bulk of that money in "highly unprofitable" options trading.

The SEC found that the financial advisor abused his position as a private client advisor at a global bank by (i) persuading certain customers to withdraw millions of dollars from their accounts and (ii) promising that he would purchase safe and secure municipal bonds on their behalf.

According to the complaint, the financial advisor bought himself cashier's checks and deposited them into his and his wife's brokerage accounts, after which he conducted "sizeable" trades of stocks and options. The SEC alleged that the advisor stole at least $20 million from customers.

See: SEC Complaint.