Starting in 2010, he diverted their relatively safe investment portfolios to his hedge fund without giving them explanation. He simply said it was better for them. He then engaged in high-risk investment strategies. Most of his 22 victims lost all or most of their retirement savings.
The AG’s office charged him with securities fraud,grand larceny, forgery, and scheme to defraud.
New York AG will continue to crack down dishonest financial advisors
During a press conference, AG Underwood said, “It is critical that New Yorkers be able to trust the people they turn to for investment advice.”
She added, “The lesson here is clear, if you deceive your investors, you will be held accountable. She emphasized that New York has powerful tools to go after financial schemes. Her office will continue to clamp down unscrupulous financial advisors who swindle New Yorkers out of their hard-earned money. They are committed to protecting New Yorkers from scammers and swindlers.
