Financial Advisor Paul McGonigle Sentenced to Prison for Defrauding Advisory Clients
According to the US Attorney’s office in Massachusetts on August 9, 2023, a US District Court judge sentenced broker Paul McGonigle to 54 months in prison and two months of supervised release. McGonigle was also reportedly ordered to pay restitution of $652,987. In February 2023, McGonigle pleaded guilty to one count of investment adviser fraud, two counts of money laundering, three counts of wire fraud, one count of mail fraud and one count of aggravated identity theft.
McGonigle reportedly pleaded guilty in February of this year, to defrauding clients and “stealing their retirement assets.” McGonigle’s clients and alleged victims were “elderly, one of whom had dementia, and another had suffered a traumatic brain injury,” according to the statement. Beginning around February 2015, McGonigle allegedly made withdrawals from victims’ annuities without authorization and persuaded victims to give him money to invest on their behalf, which he then purportedly used for personal and business expenses. McGonigle allegedly posed as clients on calls with their annuity companies and signed their names on forms requesting withdrawals from their annuities.
According to his FINRA Broker report, the regulator has reportedly barred McGonigle from the securities industry on August 12, 2020 after he failed to answer FINRA’s request for information. He was affiliated with the following firms during his career in the securities industry:
02/14/2018 – 06/28/2019, LPL FINANCIAL LLC (CRD#:6413), NEW BEDFORD, MA, 07/16/1998 – 02/14/2018, SII INVESTMENTS, INC. (CRD#:2225), NEW BEDFORD, MA
11/19/1989 – 07/22/1998, ROYAL ALLIANCE ASSOCIATES, INC. (CRD#:23131), JERSEY CITY, NJ
According to his FINRA BrokerCheck report, McGonigle has one customer complaint filed in May 2022 for allegations that “during the time period 2012 to 2019, representative misappropriated funds by forging documents to switch annuities for the purpose of stealing funds.”
FINRA Arbitration Claims for Recovery
Our experienced securities attorneys can assist you with FINRA arbitration. FINRA arbitration can be intricate and specialized, making the guidance of an experienced attorney well worth considering. We can provide essential assistance in various aspects of the process. Our attorneys can help you evaluate the strength of your case, draft a precise and compelling statement of claim detailing the alleged fraud and damages sought, represent you effectively during the arbitration hearing by presenting evidence and arguments, and potentially negotiate a settlement on your behalf before proceeding to arbitration. Ultimately, enlisting a securities attorney’s expertise can significantly enhance your chances of navigating the complexities of FINRA arbitration successfully and recovering damages.
Potential Lawsuits to Recover Losses
The White Law Group continues to investigate potential securities claims involving broker Paul McGonigle and the liability his employers may have for failure to properly supervise him.
When brokers abuse client accounts and conduct transactions that violate securities laws, the brokerage firm they are working with may be liable for investment losses. Brokerage firms that fail to monitor the business activities of their employees may be liable for investment losses due to negligent supervision for the misconduct of their employees.
The brokerage firms can be held responsible for any losses in a FINRA arbitration claim if it is determined that they failed to properly supervise their agent.
If you are concerned about investments with Paul McGonigle and LPL Financial, the securities attorneys at The White Law Group may be able to help you. For a free consultation with an attorney, please call (888) 637-5510.
The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Seattle Washington. For more information, please visit our website, www.whitesecuritieslaw.com.
Tags: broker investigation, LPL Financial, Paul Mcgonigle Last modified: August 11, 2023