May 9, 2014 Comments (0) Blog, Securities Fraud

Michigan Broker Charged With Racketeering

(Last Updated On: July 17, 2015)

According to Mlive.com, former broker Joel Wilson of Saginaw, Michigan has been successfully extradited from Europe and is facing nine felony charges for operating an alleged Ponzi scheme. The Attorney General’s office alleges, beginning in 2009, Wilson sold unregistered securities through his investment company, The Diversified Group Advisory Fund LLC. Wilson allegedly told investors that their funds would be used to purchase distressed properties that would be renovated and sold for profit.

However, it is alleged, that when Wilson failed to turn a profit he began to pay returns to investors with funds from new investors. In addition, Wilson allegedly used some of the funds for personal expenses.

Furthermore, On March 14, 2014, Wilson’s sales associate, former broker Shawn Dicken, was convicted for her role in the Diversified Group Advisory Fund. Dicken was convicted on one count of conducting a criminal enterprise, one count of embezzlement from a vulnerable adult, and seven counts of false pretenses.

According to FINRA’s BrokerCheck, both Wilson and Dicken were registered brokers with Chelsea Financial Services in 2009. When a FINRA registered broker sells investments outside the scope of their brokerage firm, the act can be considered “selling away.” If a registered broker “sells away” from their firm, the brokerage firm may be liable for negligent supervision and responsible for investment losses in a FINRA dispute resolution claim.

If you suffered losses investing with Joel Wilson or Shawn Dicken, and would like to discuss your potential to recover your losses through a FINRA arbitration claim, 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, and securities regulation/compliance law firm dedicated to the representation of investors in FINRA arbitration claims against brokerage firms throughout the United States. Our offices are located in Chicago, Illinois and Boca Raton, Florida.

To learn more about The White Law Group, visit www.WhiteSecuritesLaw.com.

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