December 17, 2018 Comments (0) Blog, Current Investigations, Securities Fraud

Hector May Pleads Guilty to Fraud

Hector May

Hector May – Securities America – Securities Fraud Investigation

According to reports on December 13, New York financial advisor Hector May pleaded guilty to federal charges for allegedly stealing more than $11 million from his clients.

May, of Orangeburg, New York, reportedly pleaded guilty to conspiracy to commit wire fraud and investment adviser fraud in federal court in White Plains, New York. May, who was once an influential business community leader, reportedly admitted to stealing the funds through his firm, Executive Compensation Planners in New City, which he ran with his wife and daughter.

May, 77, faces nearly 20 years in prison, fines of up to $400,000 and potential restitution of more than $8 million when he is sentenced before Judge Vincent Briccetti in March. He reportedly plans to surrender after the holidays.

From 1995 to March 2018, May allegedly stole money from 15 of his 130 clients. His scheme reportedly involved using money that his clients invested with him through the brokerage firm Securities America Inc. to pay for his personal and business expenses. He reportedly paid back some of the victims to hide the fraud and to keep the scheme going.

The Department of Justice launched an investigation into May’s activities after he was discharged from Securities America in March 2018 over allegations of misappropriation of client assets.

According to his FINRA BrokerCheck report, May has two pending customer complaints listed. Allegations include fraud, misappropriation, breach of fiduciary duty, and breach of contract.

Investigating Claims

The White Law Group is investigating potential claims involving former financial advisor Hector May and the liability his employer may have for failure to supervise his alleged activities.

Brokerage firms have a legal responsibility to adequately supervise the business activities of their employees. If a broker engages in a scheme that misleads clients the brokerage firm that employs them may be liable for negligent supervision.

When brokers make unsuitable investment recommendations or squander client funds, the brokerage firm that employs them may be liable for failure to supervise and responsible for investment losses.

If you suffered losses investing with Hector May, the securities attorneys at The White Law Group may be able to help you by filing a FINRA arbitration claim against his former employer. For a free consultation with a securities attorney call 888-637-5510.

The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Vero Beach, Florida.

For more information on The White Law Group, visit www.whitesecuritieslaw.com.