{"id":4085,"date":"2017-01-11T19:15:54","date_gmt":"2017-01-12T01:15:54","guid":{"rendered":"https:\/\/www.investorlawyers.com\/blog\/?p=4085"},"modified":"2022-03-25T13:18:56","modified_gmt":"2022-03-25T18:18:56","slug":"securities-fraud-cases-connecticut-based-investment-adviser-settles-fraud-charges-allegedly-involved-secret-referral-fees-jefferies-bond-traders-second-criminal-fraud-trial-underway","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/securities-fraud-cases-connecticut-based-investment-adviser-settles-fraud-charges-allegedly-involved-secret-referral-fees-jefferies-bond-traders-second-criminal-fraud-trial-underway\/","title":{"rendered":"Securities Fraud Cases: Connecticut-Based Investment Adviser Settles Fraud Charges that Allegedly Involved Secret Referral Fees, Jefferies Bond Trader\u2019s Second Criminal Fraud Trial is Underway, Former Barclays Trader Gets 5-Month Prison Term in Insider Case"},"content":{"rendered":"<p>\t\t\t\t<strong>Investment Adviser Settles SEC Case for $575K<\/strong><br \/>\nJohn W. Rafal, a Connecticut-based investment adviser, has agreed to settle US Securities and Exchange Commission charges for $575K. As part of the settlement, Rafal is admitting wrongdoing in a civil case that accuses him of <a href=\"https:\/\/www.stockbroker-fraud.com\">bilking a client<\/a> and then trying to mislead the SEC while lying to other clients about the regulator\u2019s probe.<\/p>\n<p>The SEC said that Rafal paid attorney Peter D. Hershman in secret for referring one of his client\u2019s to Essex Financial Services, which is the firm that Rafal founded. He is no longer affiliated with Essex. Rather than disclose the referral deal to the older widow who was that client, Rafal and Hershman concealed the payments as \u201clegal fees.&#8221; Even after Essex officers found out about and stopped the referral arrangement, the deal between the two men continued in secret. The SEC also said that Rafal responded to rumors that he had violated a securities law by emailing his clients and falsely stating that the regulator\u2019s probe had been resolved. He also purportedly tried persuading the Commission that his arrangement with Hershing was over.<\/p>\n<p>Essex Financial Services will pay $180K in disgorgement and interest to resolve charges connected to Rafal\u2019s wrongful behavior. Herhsman will pay over $90K to resolve the civil charges accusing him of aiding and abetting the violations committed by Rafal. The two men agreed to a securities industry bar and from serving in the roles of director or officer for any publicly traded company. They also are no longer allowed to represent clients regarding SEC matters.<\/p>\n<p> <a href=\"https:\/\/www.investorlawyers.com\/blog\/securities-fraud-cases-connecticut-based-investment-adviser-settles-fraud-charges-allegedly-involved-secret-referral-fees-jefferies-bond-traders-second-criminal-fraud-trial-underway\/#more-4085\" class=\"more-link\">Continue Reading \u203a<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Investment Adviser Settles SEC Case for $575K John W. Rafal, a Connecticut-based investment adviser, has agreed to settle US Securities and Exchange Commission charges for $575K. As part of the settlement, Rafal is admitting wrongdoing in a civil case that accuses him of bilking a client and then trying to mislead the SEC while lying [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3756,3752,3811,3781,4040,3801,3760,3741],"tags":[2686],"class_list":["post-4085","post","type-post","status-publish","format-standard","hentry","category-barclays-capital","category-financial-firms","category-insider-trading","category-investment-advisers","category-jefferies-group","category-sec","category-sec-enforcement","category-securities-fraud","tag-essex-financial-services"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Securities Fraud Cases: Connecticut-Based Investment Adviser Settles Fraud Charges that Allegedly Involved Secret Referral Fees, Jefferies Bond Trader\u2019s Second Criminal Fraud Trial is Underway, Former Barclays Trader Gets 5-Month Prison Term in Insider Case &#8212; Investor Lawyers Blog &#8212; January 11, 2017<\/title>\n<meta name=\"description\" content=\"Investment Adviser Settles SEC Case for $575K John W. Rafal, a Connecticut-based investment adviser, has agreed to settle US Securities and Exchange &#8212; January 11, 2017\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.investorlawyers.com\/blog\/securities-fraud-cases-connecticut-based-investment-adviser-settles-fraud-charges-allegedly-involved-secret-referral-fees-jefferies-bond-traders-second-criminal-fraud-trial-underway\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"Securities Fraud Cases: Connecticut-Based Investment Adviser Settles Fraud Charges that Allegedly Involved Secret Referral Fees, Jefferies Bond Trader\u2019s Second Criminal Fraud Trial is Underway, Former Barclays Trader Gets 5-Month Prison Term in Insider Case &#8212; Investor Lawyers Blog &#8212; January 11, 2017\" \/>\n<meta name=\"twitter:description\" content=\"Investment Adviser Settles SEC Case for $575K John W. Rafal, a Connecticut-based investment adviser, has agreed to settle US Securities and Exchange &#8212; January 11, 2017\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Shepherd Smith Edwards &amp; Kantas, LLP\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Securities Fraud Cases: Connecticut-Based Investment Adviser Settles Fraud Charges that Allegedly Involved Secret Referral Fees, Jefferies Bond Trader\u2019s Second Criminal Fraud Trial is Underway, Former Barclays Trader Gets 5-Month Prison Term in Insider Case &#8212; Investor Lawyers Blog &#8212; January 11, 2017","description":"Investment Adviser Settles SEC Case for $575K John W. 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Rafal, a Connecticut-based investment adviser, has agreed to settle US Securities and Exchange &#8212; January 11, 2017","twitter_misc":{"Written by":"Shepherd Smith Edwards &amp; Kantas, LLP","Est. reading time":"4 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.investorlawyers.com\/blog\/securities-fraud-cases-connecticut-based-investment-adviser-settles-fraud-charges-allegedly-involved-secret-referral-fees-jefferies-bond-traders-second-criminal-fraud-trial-underway\/#article","isPartOf":{"@id":"https:\/\/www.investorlawyers.com\/blog\/securities-fraud-cases-connecticut-based-investment-adviser-settles-fraud-charges-allegedly-involved-secret-referral-fees-jefferies-bond-traders-second-criminal-fraud-trial-underway\/"},"author":{"name":"Shepherd Smith Edwards &amp; Kantas, LLP","@id":"https:\/\/www.investorlawyers.com\/blog\/#\/schema\/person\/e0240e0754684b69f7d6a7de1b9f1431"},"headline":"Securities Fraud Cases: Connecticut-Based Investment Adviser Settles Fraud Charges that Allegedly Involved Secret Referral Fees, Jefferies Bond Trader\u2019s Second Criminal Fraud Trial is Underway, Former Barclays Trader Gets 5-Month Prison Term in Insider Case","datePublished":"2017-01-12T01:15:54+00:00","dateModified":"2022-03-25T18:18:56+00:00","mainEntityOfPage":{"@id":"https:\/\/www.investorlawyers.com\/blog\/securities-fraud-cases-connecticut-based-investment-adviser-settles-fraud-charges-allegedly-involved-secret-referral-fees-jefferies-bond-traders-second-criminal-fraud-trial-underway\/"},"wordCount":759,"keywords":["Essex Financial Services"],"articleSection":["Barclays Capital","Financial Firms","Insider Trading","Investment Advisers","Jefferies Group","SEC","SEC Enforcement","Securities Fraud"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/www.investorlawyers.com\/blog\/securities-fraud-cases-connecticut-based-investment-adviser-settles-fraud-charges-allegedly-involved-secret-referral-fees-jefferies-bond-traders-second-criminal-fraud-trial-underway\/","url":"https:\/\/www.investorlawyers.com\/blog\/securities-fraud-cases-connecticut-based-investment-adviser-settles-fraud-charges-allegedly-involved-secret-referral-fees-jefferies-bond-traders-second-criminal-fraud-trial-underway\/","name":"Securities Fraud Cases: Connecticut-Based Investment Adviser Settles Fraud Charges that Allegedly Involved Secret Referral Fees, Jefferies Bond Trader\u2019s Second Criminal Fraud Trial is Underway, Former Barclays Trader Gets 5-Month Prison Term in Insider Case &#8212; Investor Lawyers Blog &#8212; January 11, 2017","isPartOf":{"@id":"https:\/\/www.investorlawyers.com\/blog\/#website"},"datePublished":"2017-01-12T01:15:54+00:00","dateModified":"2022-03-25T18:18:56+00:00","author":{"@id":"https:\/\/www.investorlawyers.com\/blog\/#\/schema\/person\/e0240e0754684b69f7d6a7de1b9f1431"},"description":"Investment Adviser Settles SEC Case for $575K John W. 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