Securities Fraud Investigation – Kevin Wanner – Questar Capital Corporation
The White Law Group continues to investigate potential claims involving North Dakota broker Kevin Wanner and the liability his employer may have for failure to properly supervise him.
According to reports, Kevin Wanner, of Bismarck, ND, has pleaded guilty to federal charges of mail fraud and money laundering.
Wanner reportedly reached a plea agreement and pleaded guilty in U.S. District Court on Tuesday, March 13.
According to the North Dakota Securities Department, Wanner appeared to have operated a Ponzi scheme for more than 15 years, allegedly swindling 66 North Dakotans and selling fictitious brokered certificates of deposit and unregistered interests in pooled investments.
The securities department said that rather than investing the money, Wanner was purportedly pocketing most of it for personal expenses and, in classic Ponzi-scheme style, allegedly using money from one investor to pay interest to the next to keep the scheme going.
According to court documents, Wanner allegedly formed Bears & Bulls Investment Club allowing individual investors to pool funds. He purportedly provided false information and counterfeit documents, including fake account statements and tax documents, to make the investments appear legitimate.
According to FINRA BrokerCheck, Wanner was registered at Questar Captial Corp., doing DBA Precision Financial Services in Bismark, ND, from December 2012 until December 2015 when he was reportedly fired following a cease and desist order issued by the North Dakota Securities Department. Prior to that, he was registered with Woodbury Financial Services in Bismark, ND.
He was later barred by FINRA for failing to provide information and appear for testimony in an investigation into his termination from Questar.
According to the plea agreement, Wanner received more than $3,099,424 from 40 clients and falsely led them to believe he was investing in certificates of deposit, fixed income bonds and stocks.
Mail fraud carries a maximum penalty of 20 years in prison and a $250,000 fine. Money laundering has a maximum penalty of 10 years in prison and a $250,000 fine, according to court documents.
The reported also indicate that the findings of the evidentiary hearing in May will help the judge decide upon a sentence, which is scheduled for a June 18 hearing. Any restitution will also reportedly be determined at that time.
Free Consultation with a Securities Attorney
Brokerage firms are required to properly supervise all advisors they employ and to ensure that those advisors are complying with applicable FINRA rules and regulations. If it can be demonstrated that Wanner’s former employer failed to properly supervise him, his employer may be held responsible for the losses in a FINRA arbitration claim.
If you have questions about investments you made with Kevin Wanner, the securities attorneys of The White Law Group may be able to help you. To speak with a securities attorney, please call 888-637-5510.
The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Vero Beach, Florida.
For more information on The White Law Group, and its representation of investors, please visit our website at http://www.whitesecuritieslaw.com.