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Written by 3:56 pm Blog, Securities Fraud Articles

Investigation Into Kenneth McLeod Alleged Ponzi Scheme

The White Law Group is investigating potential claims involving the alleged Ponzi scheme perpetrated by Kenneth McLeod.  Specifically, the firm is investigating whether the broker-dealers to which Mr. McLeod was associated failed to properly supervise him and uncover his scheme.

The SEC has alleged that McLeod, through his benefits consulting firm, Federal Employee Benefits Group, Inc., and his registered investment adviser, F&S Asset Management Group, Inc., solicited government employees to invest in a government bond fund that did not exist. Apparently, McLeod lured many of his investors through retirement benefits seminars he gave at government agencies nationwide, raising at least $34 million since 1988 from an estimated 260 investors around the country.

The SEC further alleged that McLeod promoted the security of the government bond fund but in fact never bought any bonds and used the money to run a Ponzi scheme, using new investors’ money to pay earlier investors.

Finally, the SEC alleges that Federal Employee Benefits Group provided investors with personalized retirement benefit analyses and offered the option of having F&S Asset Management manage their money and McLeod offered many investors guaranteed annual returns of 8 percent to 10 percent in a tax-free fund backed by government bonds.

While engaged in the alleged Ponzi scheme, Kenneth McLeod appears to have been registered with several broker-dealers, including Lincoln Financial Securities Corporation, Capital Analysts, Incorporated, and Washington Square Securities.  FINRA broker-dealers have a fiduciary duty to its clients to supervise its agents and to ensure that its advisors are acting appropriately.  To the extent that any of these firms employed Mr. McLeon and failed to uncover Mr. McLeod’s alleged ponzi scheme as a result of its failure to properly supervise him, the firms may have liability to those that entrusted their money with Mr. McLeod.

If you believe you have been defrauded by Mr. McLeod, The White Law Group may be able to help.  For a free consultation, please call the firm’s Chicago office at 312-238-9650.

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 Boca Raton, Florida. With over 30 years of securities law experience, including experience working at FINRA (f/k/a the NASD) and the SEC, The White Law Group has the expertise to help investors defrauded in securities, investment and financial business transactions.

For more information on The White Law Group, please visit our website at https://whitesecuritieslaw.com.

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