SEC Charges Former Advisor Patric Baccam
According to a press announcement on Wednesday, the U.S. Securities & Exchange Commission filed a civil action against former advisor Patric Baccam (Highland, California, CRD#: 2828745) involving the allegedly fraudulent offering and sale of securities.
The SEC alleges that Baccam acted as an unregistered broker by selling certain securities away from his associated firm Centaurus Financial, Inc.
According to the complaint, the SEC alleges that, from October of 2010 – July of 2013, Baccam raised approximately $963,000 through the offer and sale of unsecured promissory notes to 18 brokerage customers and family members, representing the notes would be used to fund a venture “flipping” real estate for a profit.
Further, in connection with the offer and sales of some of those notes, Baccam allegedly knowingly or recklessly made multiple fraudulent statements regarding the safety of the investments, the promised returns on investment, the use of investor funds, and the nature and experience of the issuers.
The complaint also alleges that Baccam engaged in a scheme to defraud investors, by using newly-invested funds to make interest payments owed to earlier investors, to give investors the appearance that his real estate venture was profitable and induce further investment.
According to FINRA BrokerCheck, Baccam was registered with Centaurus Financial in Hemet, CA from 02/22/2002 – 12/31/2011. He has seven customer disputes listed on his Broker Report that include allegations of unsuitability, breach of fiduciary duty, common law fraud, breach of contract, negligent supervision, fraud, and fraudulent misrepresentation.
Brokerage firms are required to adequately supervise their advisors. They must ensure they are complying with FINRA rules. The firms can be held responsible for any losses in a FINRA arbitration claim if it is determined that they failed to properly supervise their agent.
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If you suffered losses investing with Patric Baccam, the attorneys at The White Law Group may be able to help you. For a free consultation, please call (888) 637-5510.
The foregoing information, which is all publicly available, 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, please visit our website, www.whitesecuritieslaw.com.
