According to reports, the Securities and Exchange Commission has charged a former AXA Advisors broker, Dennis Wright, with running a 14-year Ponzi scheme that misappropriated $1.5 million from his customers.
Based on these reports, it appears that between 1998 and 2012, Dennis Wright, 68, allegedly induced at least 28 customers to withdraw funds from AXA variable annuity accounts, telling them he would transfer the funds to an AXA managed account of mutual funds with higher returns than the annuities. Instead, the funds were allegedly deposited into a bank account he controlled.
The SEC has reportedly charged that the scheme, which Mr. Wright hid with falsified AXA account statements, targeted childhood friends, members of his community and unsophisticated investors.
Mr. Wright was at AXA Advisors, a subsidiary of Axa Equitable Financial Services, from 1983 until 2012.
As we previously write, see here, AXA Advisors terminated Dennis Wright’s employment in June 2013 after it became aware of the alleged fraud.
The White Law Group continues to investigate the liability that AXA Advisors may have for failing to properly supervise Mr. Wright. It has been reported that AXA Advisors has attempted to provide compensation to victims of this scheme but to the extent that there are additional investors who suffered losses as a result of investing with Mr. Wright, those individuals may have claims against AXA Advisors to recover their losses.
If you invested with Mr. Wright and would like to discuss your litigation options, please call the securities attorneys of The White Law Group at 312/238-9650 for a free consultation.
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. For more information on the firm, visit http://www.whitesecuritieslaw.com.