The Securities and Exchange Commission recently announce that it has filed civil and criminal charges against a Pennsylvania man accused of defrauding elderly investors by issuing phony account statements inflating the value of his clients’ accounts, and then pilfering funds from another client in a repayment scheme.
The SEC’s complaint alleges David L. Rothman defrauded a pair of clients described as “elderly and unsophisticated investors” from 2006 to 2011 with phony account statements that “materially overstated” the value of their holdings.
The complaint further alleges that after the investors discovered the fraud, Rothman allegedly committed to repay the value he had reported on the fraudulent statements, but eventually money ran short.
In a separate matter dating back to 2004, Rothman was apparently censured by the CFP Board involving the purchase of Class S shares of mutual funds.
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