February 8, 2018 Comments (0) Current Investigations, Securities Fraud

NJ Broker Fined $100,000 for Allegedly Defrauding Elderly Couple

Michael A. Siegel
(Last Updated On: February 8, 2018)

NJ Bureau Revokes Registration of Broker Michael A. Siegel

According to the Attorney General Gurbir S. Grewal and the New Jersey Bureau of Securities on February 1, Michael A. Siegel and his firm NJLI Advisors LLC have been fined $100,000 in civil monetary penalties for allegedly defrauding an elderly couple of at least $280,000. The Bureau has also revoked Siegel’s registration.

According to the press announcement, Siegel befriended the elderly couple, who were in their 80s, while they were dealing with a significant health issue within the family.

Siegel reportedly spent hours each week with the elderly husband discussing the stock market.  Shortly after the family member passed away, Siegel reportedly convinced the elderly couple to transfer their brokerage accounts to a broker-dealer with whom Siegel was associated.

In the Summary Penalty and Revocation Order issued by the Bureau on February 1, 2018, the Bureau Chief found that Siegel allegedly convinced the couple to write him checks to invest in options contracts, which he never purchased. He purportedly kept the money for his own personal use including travel, high-end audio equipment, and restaurants.

The Bureau Chief found that, between July 2013 and January 2016, Siegel allegedly exploited his relationship with the couple by having them write checks to him personally for the purported options investments and commissions for the purported investments.  Siegel also allegedly violated the policies of procedures of two broker-dealers that Siegel was associated with by accepting checks, loans and gifts from the elderly couple who had accounts with the two firms.

Siegel allegedly continued to direct the elderly widow to write him checks for purported options investments and commissions after her husband died. The widow reportedly relied on Siegel for financial decisions and entrusted him with access to her email account, bank accounts, and passwords.

The Bureau Chief also found that the couple allegedly paid for a lease and insurance on a 2014 Cadillac SRX SUV for Siegel, which he was required to but did not report to the broker-dealer with which he was associated. The widow also purportedly co-signed on a lease for a Lexus for Siegel’s daughter and made at least one payment toward that lease.

According to his FINRA BrokerCheck report, during his 19 years in the securities industry Siegel was registered with 13 different firms.  Most recently, Siegel was affiliated with National Securities Corporation in Edison, NJ from April 2014 through May 2016. FINRA reportedly barred Siegel from the securities industry in October 2016.

Free Consultation with a Securities Attorney

When brokers make unsuitable investment recommendations and squander client funds, the brokerage firm that employs them may be liable for failure to supervise and responsible for investment losses.

If you were a client of Michael A. Siegel and suffered losses, The White Law Group may be able to help you by filing a FINRA arbitration claim against the brokerage firm that sold you the investment. For a free consultation with a securities attorney call 888-637-5510.

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.

For more information on The White Law Group, visit www.whitesecuritieslaw.com.

 

 

 

 

 

 

 

error: Content is protected !!