Former broker, Jane O’Brien, who is serving a 33 month sentence after pleading guilty to defrauding clients, is facing additional charges. According to Investment News, O’Brien is being indicted for an 18-year Ponzi scheme. Allegedly O’Brien misappropriated approximately $1.3million of client funds between 1995 and 2013 by convincing clients to invest in private placements. However, it appears she never invested the money and allegedly spent the money on personal expenses and to pay purported returns to investors
According to Investment News, “In one case, Ms. O’Brien allegedly persuaded a client to invest in the Hollywood movie ‘Crooked Arrows’.” In addition, she promised the client a 25% return.
The White Law Group is investigating the liability that O’Brien’s employers may have for her actions. When a registered broker conducts business outside of the firm where they work the activity may be considered “selling away.” If a registered broker “sells away” from his firm, the brokerage firm may still be liable for negligent supervision of their broker representative and may be responsible for investment losses in a FINRA dispute resolution claim.
According to O’Brien’s BrokerCheck report, she worked with Merrill Lynch in New York from 12/1982-06/1990. She relocated to Boston and worked with CitiGroup Global Markets from 06/1990-11/2007. Then she went back to Merrill Lynch from 12/2007-12/2011.
If you suffered losses investing with Jane O’Brien and would like to discuss your litigation options, please call the securities attorney of The White Law Group at(312) 238-9650 for a free consultation.
The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection/compliance law firm with offices in Chicago, Illinois and Boca Raton, Florida.
To learn more about The White Law Group, visit www.WhiteSecuritesLaw.com.