For example, in 2017, Ex-Sterne, Agee, and Leech broker and managing director Deborah Dickson Kelley pleaded guilty to securities fraud after taking part in a “pay-to-play” scam so as to work with the New York State Common Retirement Fund. One ...

A financial or investment product failed in several cases because it was part of a Ponzi scam. In other cases, the broker, or the dealer did not perform due diligence to ensure the investment was legitimate.

Madoff Investment Securities: Bernie Madoff’s hedge fund was essentially a $65B Ponzi scheme that went on for years until 2008. His scam defrauded thousands of investors, from the rich and famous to many others. Madoff was eventually convicted and sent ...

The latter, a New York-based alternative asset firm, was sued by the SEC for allegedly operating an over $1.8B Ponzi scam.

Brokers also have a duty to ensure that an investment is legitimate and not part of a Ponzi scam or another type of fraud. Unfortunately, many investment losses happen because a registered representative made an unsuitable recommendation or left out ...

Nelson Partners owner Patrick Nelson is accused of allegedly running a Ponzi-like scam and using proceeds from the 2019 deal to invest in other ventures while turning a profit. Besides that, hedge fund Axonic Capital, which provided millions to help ...

Bennett, also of Bennett Group Financial, allegedly ran a $20M Ponzi Scam. She was sentenced to 20 years in prison in 2019.

At that time, the stock market in the United States was not federally regulated and, as a result, many scams had been perpetrated on the investing public. In response, Congress passed the Exchange Act with the intention of protecting investors ...

over losses caused by: Misappropriation Broker fraud Misrepresentations and Omissions Negligence Unregistered securities sales Other registration violations Failure to execute trades Churning Unsuitability Overconcentration Unauthorized trading Breach of contract Breach of fiduciary duty Failure to supervise Different kinds of investment ...

Over Alleged $110M Ponzi Scam On August 1, 2021, investors filed a securities fraud lawsuit against Oppenheimer over the investment losses they sustained in an alleged Ponzi scam involving ex-broker John J. Woods. The former Georgia financial advisor is also ...