October 19, 2015
Former Coastal Equities broker Michael Donnelly of Lecanto, Florida, admitting defrauding his clients and to disgorge over $2.2 million. In addition he consented to an SEC order permanently barring him from the securities industry.
According to the SEC’s complaint filed in federal district court in Philadelphia, Donnelly took funds from elderly and unsophisticated investors and instead of investing it as promised, used it to pay for his own expenses, including rent, car payments, golf club membership dues, and his children’s private school tuition. Donnelly concealed his scheme by providing investors with false account statements, trade confirmations, and other bogus information that purportedly reflected their investment holdings and repeatedly told investors that their fictitious “investments” were performing well. The scheme ran from 2007 through August 2014.
Donnelly’s victims were primarily elderly persons, many of whom were in their mid to late 80’s. One couple, age 81 and 83, lost $800,000.
If you have questions about the way your brokerage account is being handled or about losses in your account, call to speak with an experienced securities attorney.
Rex Securities Law , with offices in Boca Raton, FL, and Austin, TX, provides representation to investors nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.
Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.
Florida-561 391 1900