Advisor Paul McGonigle Reportedly Arrested after Allegations of Wire Fraud, Mail Fraud & Identity Theft
According to a press announcement on June 9, 2021, financial advisor Paul McGonigle of Middleboro, MA was reportedly arrested and charged with defrauding elderly clients and stealing retirement assets.
McGonigle, who was reportedly registered with LPL Financial in New Bedford from 2018 until June 2019 was charged with defrauding clients by allegedly taking unauthorized withdrawals from victims’ annuities and convincing victims to give him money to invest on their behalf, which he then allegedly used for personal and business expenses.
The charges reportedly include three counts of wire fraud, one count of mail fraud and one count of aggravated identity theft.
The alleged fraud scheme began in July 2018 when McGonigle purportedly posed as clients on calls with their annuity companies and allegedly signed their names on forms requesting withdrawals from their annuities, according to the press release, citing court documents.
According to his broker profile, the Financial Industry Regulatory Authority (FINRA) reportedly barred McGonigle as of November 16, 2020 after he allegedly failed to respond to FINRA’s request for information. He reportedly has 1 customer complaint filed against him in 2007 for allegations of churning and excessive trading, among others. He was reportedly affiliated with SII Investments for 20 years before making the move to LPL in 2018.
The charges of mail and wire fraud could reportedly mean a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $250,000 or twice the gross gain or loss from the offense, whichever is greater. The charge of aggravated identity theft provides for a mandatory consecutive sentence of two years in prison, up to one year of supervised release and a fine of $250,000 or twice the gross gain or loss from the offense, whichever is greater.
Filing a Complaint against your Brokerage Firm
Brokerage firms are required to adequately supervise their advisors. They must ensure they are complying with FINRA rules.
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. For more information, please visit our website, www.whitesecuritieslaw.com.
Tags: broker investigation, Paul Mcgonigle Last modified: August 11, 2023