According to the associated press, former broker Mary Faher has been sentenced from 23 months to 10 years for her role in an alleged ponzi scheme. Faher worked for the investment company Diversified, which was accused of operating a ponzi scheme.
The Attorney General’s office alleged that, beginning in 2009, Joel Wilson, the owner of The Diversified Group Advisory Fund LLC, began selling unregistered securities. Wilson allegedly told investors that their funds would be used to purchase distressed properties that would be renovated and sold for profit. It appears that Faher was one of two brokers that were employed by The Diversified Group Advisory Fund LLC.
Faher was also a registered broker during the relevant time. According to BrokerCheck Faher worked in Michigan with Fifth Third Securities from 03/2004 – 02/2011, and W R Rice Financial Services from 03/2011 – 11/2012.
For her alleged part in this scheme, Faher was ordered to contribute to the $2.6 million in restitution to the defrauded investors. It is unclear if Faher will be able to do so.
As such, The White Law Group is investigating other avenues of recovery, including potential claims against the brokerage firms that recommended these investments or employed advisors that recommended these investments. Broker dealers have a responsibility to perform adequate due diligence on any investment they recommend to determine that the investment is sound and has a reasonable likelihood of success. They also have a responsibility to make suitable investment recommendations to investors.
If you purchased The Diversified Group Advisory Fund at the recommendation of Mary Faher without and would like to discuss your litigation options, please call The White Law Group at (312)238-9650 for a free consultation.
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 firm, visit www.WhiteSecuritiesLaw.com.