{"id":4204,"date":"2017-02-26T16:48:49","date_gmt":"2017-02-26T22:48:49","guid":{"rendered":"https:\/\/www.investorlawyers.com\/blog\/?p=4204"},"modified":"2022-03-25T13:41:32","modified_gmt":"2022-03-25T18:41:32","slug":"securities-cases-broidy-wealth-management-advisors-founder-pleads-guilty-fraud-bondholders-file-arbitration-claim-bok-financial-sec-files-complaint-5m-pyramid-scam","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/securities-cases-broidy-wealth-management-advisors-founder-pleads-guilty-fraud-bondholders-file-arbitration-claim-bok-financial-sec-files-complaint-5m-pyramid-scam\/","title":{"rendered":"Securities Cases: Broidy Wealth Management Advisors Founder Pleads Guilty to Fraud, Bondholders File Arbitration Claim Against BOK Financial, and SEC Files Complaint in $5M Pyramid Scam"},"content":{"rendered":"<p><strong>RIA Misappropriated Over $865K and Withdrew $640K in Excess Fees, Say Prosecutors<\/strong><br \/>\nBroidy Wealth Advisors CEO Mark Broidy has pleaded guilty to taking $640K in excess management fees from clients and <a href=\"https:\/\/www.stockbroker-fraud.com\">misappropriating<\/a> over $864K in stock that were in trusts of which he was the trustee. Now, the registered investment advisor must make restitutions to those whom he defrauded. He could end up serving up to five years behind barsamong other penalties.<\/p>\n<p>According to the Justice Department, from around 11\/2010 to 7\/2016 Broidy billed more than what he was allowed to in compensation, which caused three clients to pay more than $640K in excess fees. He concealed his theft by falsifying those clients\u2019 IRS Form 1099s.<\/p>\n<p>After one client demanded that Broidy pay back the stolen funds the latter allegedly sold over $865K of stock from another client\u2019s trust accounts, which were for that person&#8217;s children. Broidy also suggested that several clients invest in startups with which he had deals to pay him part of any money he raised on the companies\u2019 behalf. The clients didn\u2019t know about these arrangements.<\/p>\n<p> <a href=\"https:\/\/www.investorlawyers.com\/blog\/securities-cases-broidy-wealth-management-advisors-founder-pleads-guilty-fraud-bondholders-file-arbitration-claim-bok-financial-sec-files-complaint-5m-pyramid-scam\/#more-4204\" class=\"more-link\">Continue Reading \u203a<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>RIA Misappropriated Over $865K and Withdrew $640K in Excess Fees, Say Prosecutors Broidy Wealth Advisors CEO Mark Broidy has pleaded guilty to taking $640K in excess management fees from clients and misappropriating over $864K in stock that were in trusts of which he was the trustee. Now, the registered investment advisor must make restitutions to [&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":[3781,3738,3801,3760],"tags":[2739,2740],"class_list":["post-4204","post","type-post","status-publish","format-standard","hentry","category-investment-advisers","category-investor-fraud","category-sec","category-sec-enforcement","tag-bok-financial","tag-broidy-wealth-advisors"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Securities Cases: Broidy Wealth Management Advisors Founder Pleads Guilty to Fraud, Bondholders File Arbitration Claim Against BOK Financial, and SEC Files Complaint in $5M Pyramid Scam &#8212; Investor Lawyers Blog &#8212; February 26, 2017<\/title>\n<meta name=\"description\" content=\"RIA Misappropriated Over $865K and Withdrew $640K in Excess Fees, Say Prosecutors Broidy Wealth Advisors CEO Mark Broidy has pleaded guilty to taking &#8212; 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Investor Lawyers Blog &#8212; February 26, 2017","twitter_description":"RIA Misappropriated Over $865K and Withdrew $640K in Excess Fees, Say Prosecutors Broidy Wealth Advisors CEO Mark Broidy has pleaded guilty to taking &#8212; February 26, 2017","twitter_misc":{"Written by":"Shepherd Smith Edwards &amp; Kantas, LLP","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.investorlawyers.com\/blog\/securities-cases-broidy-wealth-management-advisors-founder-pleads-guilty-fraud-bondholders-file-arbitration-claim-bok-financial-sec-files-complaint-5m-pyramid-scam\/#article","isPartOf":{"@id":"https:\/\/www.investorlawyers.com\/blog\/securities-cases-broidy-wealth-management-advisors-founder-pleads-guilty-fraud-bondholders-file-arbitration-claim-bok-financial-sec-files-complaint-5m-pyramid-scam\/"},"author":{"name":"Shepherd Smith Edwards &amp; Kantas, LLP","@id":"https:\/\/www.investorlawyers.com\/blog\/#\/schema\/person\/e0240e0754684b69f7d6a7de1b9f1431"},"headline":"Securities Cases: Broidy Wealth Management Advisors Founder Pleads Guilty to Fraud, Bondholders File Arbitration Claim Against BOK Financial, and SEC Files Complaint in $5M Pyramid Scam","datePublished":"2017-02-26T22:48:49+00:00","dateModified":"2022-03-25T18:41:32+00:00","mainEntityOfPage":{"@id":"https:\/\/www.investorlawyers.com\/blog\/securities-cases-broidy-wealth-management-advisors-founder-pleads-guilty-fraud-bondholders-file-arbitration-claim-bok-financial-sec-files-complaint-5m-pyramid-scam\/"},"wordCount":575,"keywords":["BOK Financial","Broidy Wealth Advisors"],"articleSection":["Investment Advisers","Investor Fraud","SEC","SEC Enforcement"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/www.investorlawyers.com\/blog\/securities-cases-broidy-wealth-management-advisors-founder-pleads-guilty-fraud-bondholders-file-arbitration-claim-bok-financial-sec-files-complaint-5m-pyramid-scam\/","url":"https:\/\/www.investorlawyers.com\/blog\/securities-cases-broidy-wealth-management-advisors-founder-pleads-guilty-fraud-bondholders-file-arbitration-claim-bok-financial-sec-files-complaint-5m-pyramid-scam\/","name":"Securities Cases: Broidy Wealth Management Advisors Founder Pleads Guilty to Fraud, Bondholders File Arbitration Claim Against BOK Financial, and SEC Files Complaint in $5M Pyramid Scam &#8212; 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