Bradley Smegal Investment Losses
According to reports, fired Wells Fargo investment adviser Bradley Smegal is facing federal securities fraud charges for allegedly stealing more than $5 million from clients.
Authorities purportedly allege that from mid-2007 through early 2013, Smegal convinced at least 14 of his clients to invest in entities where he had a personal stake. The charging document, known as an information, says Smegal did not disclose his involvement to his clients, falsely described the investments as conservative, and “guaranteed specific rates of return.”
Smegal and his wife Catherine Sue Smegal, who have since moved from Minneapolis to Bainbridge Island, Wash., filed for Chapter 7 bankruptcy in 2013.
They reportedly claimed estimated personal assets of $77,420 including three Rolex watches, two Cartier gold bracelets, and a Mercedes-Benz sports car. In their filing, the couple listed $4.4 million in estimated liabilities, including $2.7 million in claims from two Prior Lake women who were Smegal’s clients.
Prosecutors have further alleged that Smegal diverted more than $825,900 to his personal bank account and sometimes made “Ponzi-type payments” to investors.
Wells Fargo fired Smegal in late 2011. Six months later, the Financial Industry Regulatory Authority banned him from the securities industry.
Recovery of Investment Losses
The foregoing information, which is all publicly available on FINRA’s website, is being provided by The White Law Group. 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 Franklin, Tennessee. For more information on the firm and it’s representation of investors, visit https://www.whitesecuritieslaw.com.
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