According to reports, Joseph Stephen Fabian, a financial advisor from Gobles, Mich., was sentenced to 92 months in prison for defrauding 30 clients out of $4.8 million.
These same reports indicate that some of the victims were supporting special needs children or people with health problems.
Apparently, Fabian, who operated as Fabian & Associates LLC of Kalamazoo and as Fabian Financial Group, pled guilty to one count of wire fraud. The charges relate to allegations that Fabian, between 2005 and 2010, induced his clients to withdraw money from their existing retirement accounts, investment accounts and bank accounts and invest it in his products. However, Fabian fabricated some of the investment products or failed to deposit the money into ones that did exist. Instead, he allegedly used the money for himself.
The reports also state that Fabian agreed to make restitution of $3.8 million ($1 million less than the $4.8 million he accepted from his clients to allegedly invest in his products).
The White Law Group is currently investigating the potential for clients of Fabian to recover their losses in claims against the broker-dealer that he worked for during a portion of the relevant time period. According to his FINRA Broker Report, from 10/2003 – 05/2007, Fabian was a financial advisor working for FSC Securities Corporation.
Even if a financial advisor is conducting business without the knowledge of his brokerage firm, the firm may still be liable for negligent supervision of their broker representative and may be responsible for investment losses in a FINRA arbitration claim.
If you have suffered losses due to your investment with Fabian and would like to speak to a securities attorney about your potential to recover those investment losses, please call The White Law Group’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.
For more information on The White Law Group, please visit our website at http://www.whitesecuritieslaw.com.