New York Investment Advisor Eric Erb – Securities Fraud Investigation
Have you suffered losses investing with former financial advisor Eric Erb in Babylon, NY? If so, the securities attorneys at The White Law Group may be able to help you recover your losses.
According to reports, Eric C. Erb, a former Long Island investment advisor and hedge fund manager was sentenced for allegedly stealing $3 million from 38 investors.
In August, Eric Erb reportedly pleaded guilty to wire fraud related to the fraud scheme. He was sentenced Friday to 57 months in prison, followed by three years of supervised release, according the U.S. Justice Department.
Court documents state that between January 2016 and February 2017, Erb allegedly solicited nearly $5.4 million from investors in a hedge fund and other investment opportunities that Erb managed from a Babylon office.
Erb purportedly used the stolen funds for personal expenses such as country club dues, home renovations and private school tuition, according to officials.
According to his FINRA BrokerCheck report, Erb was registered with Liberty Partners Financial Services in Babylon, NY from April 2013 until May 2014. He spent a brief time working for Securities America during 2013, and prior to that, he was affiliated with AXA Advisors, Babylon NY from October 2002 until he “was permitted to resign while under investigation for potential unsuitable transactions and potential signature irregularities.” Erb has ten disclosure events listed on his broker report.
Failure to Supervise
The White Law Group is investigating potential claims regarding the liability that Erb’s employers may have for failure to properly supervise him.
Brokers are prohibited from engaging in underhanded businesses practice, like churning or unauthorized trading. They have a fiduciary duty to make investment recommendations that are consistent with the clients net worth, investment experience and objectives. Risk tolerance, age, and liquidity needs also need to be considered.
When brokers abuse client accounts and conduct transactions that violate securities laws, the brokerage firm they are working with may be liable for investment losses through FINRA Arbitration.
Brokerage firms that fail to monitor the business activities of their employees may be liable for investment losses due to negligent supervision for the misconduct of their employees.
Are you concerned about your investments with Eric Erb? If so, the securities attorneys of The White Law Group may be able to help. For a free consultation 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 Franklin, Tennessee.
For more information on The White Law Group, visit www.WhiteSecurtiesLaw.com.