Former Advisor Stephen S. Eubanks Sentenced to Prison
On Tuesday in U.S. District Court, Stephen S. Eubanks, of Hingham, MA was sentenced to 30 months in prison followed by three years of supervised release. He also was ordered to pay $437,609 in restitution.
According to reports, Eubanks, who was formerly registered as a financial advisor in Las Vegas, NV, was charged by the Secretary of the Commonwealth in Massachusetts for allegedly engaging in a Ponzi scheme.
Eubanks had allegedly taken at least $529,000 from friends and neighbors, according to reports.
In 2011, Eubanks allegedly posed as a successful hedge fund manager who operated Eubiquity Capital, LLC. He asked investors for money to invest in stocks, options and other securities. Instead, $145,000 was used to pay for personal expenses and $140,000 was used to repay earlier investors.
Although he was no longer registered as an investment adviser or a securities dealer, Eubanks presented himself to acquaintances as a financial adviser running a hedge fund affiliated with Goldman Sachs, TD Ameritrade, UBS Bank and Fidelity Investments, the U.S. attorney’s office said.
He reportedly continued the Ponzi scheme by obtaining more money from new investors, which was used to pay for his lavish lifestyle, including vacations to Martha’s Vineyard, boat payments and a partial payment of his federal tax debt, the notice said.
According to his Broker Check, Eubanks was registered with Bright Trading, LLC in Las Vegas, NV from 03/2010 – 08/2016. He has four customer disputes listed, one of which is still pending. He was discharged from Bright Trading in August 2016 in light of the investigation by the Chicago Stock Exchange. He was also permanently barred from the securities industry in November 2016.
If you suffered losses investing with Stephen S. Eubanks, the securities attorneys at The White Law Group may be able to help you recover your losses. For a free consultation, please call (888) 637-5510.
The foregoing information, which is all publicly available on FINRA’s website, is being provided by The White Law Group.
The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Vero Beach, Florida.