September 28, 2020 Comments Off on Former Broker Craig Zabala Reportedly Charged with Fraud Blog, Current Investigations

Former Broker Craig Zabala Reportedly Charged with Fraud

Former Broker Craig Zabala Reportedly Charged with Fraud, featured by top securities fraud attorneys, The White Law Group

Craig Zabala, John W. Loofburrow & Associates, Harlem, New York

SEC charges Craig Zabala with Allegations of Defrauding Investors

According to The U.S. Securities and Exchange Commission on September 24,  the regulator announced charges against former broker Craig A. Zabala for  allegedly defrauding investors in his company, Concorde Group Holdings Inc.

The SEC alleges that, between February 2015 and August 2019, Zabala raised approximately $4.38 million from 17 investors throughout the United States, purportedly to develop Concorde into a merchant bank for mid-sized companies and to invest in affiliate entities.

According to the complaint, Zabala allegedly lied to investors that Concorde had raised more than $24 million and was close to completing a $25 million offering. The SEC’s complaint also alleges that Zabala misappropriated over $3 million of investor funds by making almost $2 million in unauthorized payments to himself and his longtime girlfriend, and $1.2 million in Ponzi-like payments to earlier investors in an affiliate company. Zabala allegedly “used investor funds for personal expenses, including car payments and international travel expenses” for himself and his girlfriend, according to the SEC.

According to his FINRA BrokerCheck report, Zabala was registered with John W. Loofburrow and  Associates, Inc. in Harlem, NY from 02/07/2015 – 04/29/2019. FINRA reportedly barred Zabala from working in the securities industry in August 2019, after he failed to provide documents and information requested by FINRA in connection with its review of his alleged outside business activities and his purported participation in private securities transactions. The findings stated that Zabala provided a partial, but incomplete, response to FINRA’s request.

Filing a Complaint against your Brokerage Firm

When brokers abuse client accounts or conduct transactions that violate securities laws, the brokerage firm they are working with may be liable for investment losses. 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.

If you are concerned about investments with Craig Zabala, the securities attorneys of The White Law Group may be able to help you. 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.WhiteSecuritiesLaw.com.

 

 

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