According to the Pocono Record, a former Pennsylvania stockbroker has plead guilty to mail fraud. The charges against Joseph R. Gallardo stem from an investment fraud investigation.

Gallardo allegedly persuaded clients to invest in his personal real estate venture, Blue Meadow Group, LLC. Allegedly, investors were guaranteed lucrative returns and told their investment was protected. Instead, Gallardo reportedly used the money to purchase a gas station and convenience store. However, he is also accused of using the money to fund his online day trading account that suffered substantial losses.

According to reports, Blue Meadow Group was not an investment trust and the securities Gallardo was selling were not registered in the state of Pennsylvania. It is alleged that Gallardo lost approximately $1.8 million through his fraudulent activities.

According to BrokerCheck, Gallardo was a registered representative in three different states between 2001 and 2009. He worked In New York with Quick & Reilly from 09/2001 – 12/2003, in Massachusetts with Investors Capitial form 12/2003 – 12/2008, and in Pennsylvania with Brokersxprsss from 11/2008 – 02/2009.

Brokerage firms have a responsibility to monitor the business transactions of their employees, including transactions that occur outside of the firm. When a broker sells an investment product that is not approved by the firm, the act can be considered selling away. If a broker is convicted of selling away, the brokerage firm may be liable for negligent supervision and responsible for investment losses.

If you were a client of Joseph R. Gallardo and would like to discuss your potential to recover your losses, 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/compliance law firm with offices in Chicago, Illinois and Vero Beach, Florida.

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