According to SalemNews.com, an administrative complaint against former broker, John Michael Babiarz, by the Securities Division of Massachusetts alleges he defrauded multiple elderly clients out of nearly $500,000.
The complaint alleges that Mr. Babiarz told clients he was a broker agent for Fidelity Brokerage Services when in fact he was conducting business as an independent advisor. In order to legally sell securities in the Commonwealth, Mr. Babiarz is required to be registered with the state and with the Financial Industry Regulatory Authority (FINRA).
According to the complaint, after September 2011, Mr. Babiarz created Fidelity accounts for his victims but used his personal contact information. In addition, he allegedly shifted nearly $500,000 from his clients accounts to his own, including his E*Trade account and family bank account. Mr. Babiarz is accused of making large cash withdrawals and spending the cash on personal expenses.
According to Mr. Babiarz’s FINRA BrokerCheck Report, it appears that he was not registered with a FINRA affiliated broker-dealer during the relevant time. He was a registered broker agent with Bishop, Rosen & Co. from 11/2009 until he was terminated in 09/2011 for alleged misrepresentation to a client. Mr. Babiarz previously worked with Capitol Securities Management and Jesup & Lamont Securities Corp.
The foregoing information, which is publically available, is being provided by The White Law Group.
The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Boca Raton, Florida.
If you had dealings with Mr. Babiarz and incurred investment losses while he was a registered broker, The White Law Group may be able to help. To discuss your litigation options with a securities attorney, please call (312)238-9650 for a free consultation.
For more information on The White Law Group, visit www.WhiteSecurtiesLaw.
