FINRA Bars Financial Advisor Paul McGonigle after Allegations of Defrauding Advisory Clients
According to a press release from the US Attorney’s office in Boston, Mass. On Feb 1, former financial advisor Paul McGonigle of Middleboro, Mass., has been charged in a superseding indictment in connection with allegedly defrauding his elderly clients by stealing the victims’ retirement assets.
The charges reportedly include one count of investment adviser fraud and two counts of money laundering. McGonigle was previously arrested and charged in June 2021 with three counts of wire fraud, one count of mail fraud and one count of aggravated identity theft.
McGonigle was a financial advisor for the elderly victims, according to the charges. Beginning around February 2015, McGonigle allegedly made withdrawals from victims’ annuities without authorization and persuaded victims to give him money to invest on their behalf, which he then purportedly used for personal and business expenses. McGonigle allegedly posed as clients on calls with their annuity companies and signed their names on forms requesting withdrawals from their annuities.
According to his FINRA Broker report, the regulator has reportedly barred McGonigle from the securities industry on August 12, 2020 after he failed to answer FINRA’s request for information. He was affiliated with the following firms during his career in the securities industry:
02/14/2018 – 06/28/2019, LPL FINANCIAL LLC (CRD#:6413), NEW BEDFORD, MA,
07/16/1998 – 02/14/2018, SII INVESTMENTS, INC. (CRD#:2225), NEW BEDFORD, MA
11/19/1989 – 07/22/1998, ROYAL ALLIANCE ASSOCIATES, INC. (CRD#:23131), JERSEY CITY, NJ
McGonigle could be facing up to five years in prison, three years of supervised release and a fine of up to $250,000 or twice the gross gain or loss from the offense, whichever is greater, for the charges of investment advisor fraud, according to the press announcement. He is also facing charges of money laundering and mail and wire fraud and aggravated identity theft.
Potential Lawsuits to Recover Financial Losses
The White Law Group continues to investigate potential securities claims involving Paul McGonigle and the liability his employers may have for failure to properly supervise him.
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. 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.
The brokerage 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.
To learn more about the firm’s investigation, please see:
If you are concerned about investments with Paul McGonigle and LPL Financial, the securities attorneys at The White Law Group may be able to help you. For a free consultation with an 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 Seattle Washington. For more information, please visit our website, www.whitesecuritieslaw.com.