NEWARK, NJ — A Livingston broker’s agent registration will be revoked
and he will receive an imposition of $100,000 in civil monetary
penalties against him and his company NJLI Advisors L.L.C. after
defrauding an elderly couple of at least $280,000, according to Attorney
General Gubrir Grewal and the New Jersey Bureau of Securities within
the Division of Consumer Affairs.
According to their announcement, Michael Alan Siegel befriended the
elderly couple, who were in their 80s, ingratiating himself to them
while they were dealing with a significant health issue within the
family. Siegel spent hours each week with the elderly husband discussing
the stock market, according to the attorney general’s office.
Shortly after the death of a family member, the elderly couple was
convinced to transfer their brokerage accounts to a broker-dealer with
whom Siegel was associated. In the Summary Penalty and Revocation Order
issued by the bureau on Feb. 1, the bureau chief found that Siegel
convinced the couple to write him checks to invest in options contracts,
which he never purchased. He pocketed the couple’s money and spent it
on travel for him and his family members, high-end audio equipment and
restaurants.
“The behavior outlined by the Bureau in this case is outrageous and
infuriating,” said Grewal. “Taking advantage of an elderly couple during
a time when they most need help and empathy is disgusting. The bureau
did the right thing by making sure this agent never has the ability to
con people again under the guise of being a securities agent.”
Sharon M. Joyce, Acting Director of the Division of Consumer Affairs,
said that registered securities agents are entrusted with hard-earned
money of their clients. She added that violations like this “must be met
with the strongest possible penalties”
According to the bureau chief, it was discovered that Siegel
exploited his relationship with the couple between July 2013 and January
2016 by having them write personal checks to him for the purported
options investments and commissions for the purported investments.
Siegel also violated the policies of procedures of two broker-dealers
that he was associated with by accepting checks, loans and gifts from
the elderly couple who had accounts with the two firms, according to the
bureau.
When the husband died, Siegel continued to direct the elderly widow
to write him checks for purported options investments and commissions.
According to the attorney general’s office, the widow relied on Siegel
for financial decisions and entrusted him with access to her email
account, bank accounts and passwords.
Full Article & Source:
$100,000 Civil Penalty Filed Against Livingston Broker Who Defrauded Elderly Couple
I am glad to see this. With all the powers brokers are getting to respond to elder abuse, the public needs to know how much they steal too. Knowledge is power.
ReplyDelete