Former Cetera Advisor David Rockwell Sentenced to Prison

David A. Rockwell, Cape Coral, Florida Reportedly Pleads Guilty to Fraud

The White Law Group continues to investigate potential securities claims involving David Rockwell and the liability his brokerage firm may have for failure to properly supervise him.

According to a press announcement on June 2, financial advisor David Rockwell of Cape Coral was sentenced to five years in federal prison for wire fraud and bank fraud after pleading guilty in January. As part of his sentence, the court also entered a money judgment of $1,018,000, the proceeds of his wire and bank fraud.

Rockwell, who was registered with Cetera Advisor Networks, reportedly managed investment and retirement accounts for his clients from 2015 until 2018. Beginning in October 2017, Rockwell allegedly defrauded clients by stealing clients’ funds for his own personal use, according to the complaint. Rockwell also purportedly defrauded a federally insured bank when he applied for two lines of credit, totaling $700,000, in his clients names without their knowledge or permission.

According to the complaint,  without their knowledge or consent, Rockwell allegedly forged the clients’ signatures on the loan applications and pledged the clients’ assets as collateral for the loans. Rockwell used the funds that he had obtained from the loans for personal expenses.

Rockwell also encouraged another client to invest in low-income housing in Florida, and then diverted the client’s $400,000 investment to pay his personal credit cards and to purchase a home, according to the complaint.

The Financial Industry Regulatory Authority (FINRA) reportedly barred Rockwell in February 2020 from associating with any FINRA member firm in all capacities.

Rockwell reportedly has three customer complaints on his broker report. Allegations include forgery, fraud and misappropriation of customer funds “to invest in a private security related to a company owned by Mr. Rockwell.”

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 David Rockwell, 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 foregoing information, which is all publicly available, is being provided by The White Law Group.

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.