Ex-Lincoln Investment advisor Lester “Chad” Burroughs Found Guilty of Wire Fraud
The Securities and Exchange Commission has entered a final judgment this week against Lester “Chad” Burroughs, of Torrington, CT in connection to allegations that he defrauded three advisory clients out of $575,000, according to an article in Investment News.
In April 2020 Burroughs was reportedly found guilty of wire fraud and sentenced to 33 months in prison followed by three years of supervised release, for allegedly misappropriating approximately $575,000 from investment clients, most of whom were elderly, according to a press release.
Burroughs allegedly defrauded three advisory clients out of $575,000 by purportedly convincing them to invest approximately $560,000, some of which he allegedly used to repay the original client approximately $445,000, which reflected the principal invested plus 4 percent annual interest.
According to the charges, Burroughs allegedly told these advisory clients that he would invest their money in “Guaranteed Interest Contracts” (GIC) with guaranteed annual returns of 4% or 7%. Instead of investing the money in GICs he purportedly kept the funds for himself and “provided clients with fake account statements to hide his theft.”
In the criminal case, Burroughs was reportedly ordered to pay restitution of $575,000 to his victims. According to the SEC’s final judgment, Burroughs was allegedly required to pay disgorgement of $560,000, which was deemed satisfied by the criminal restitution order.
According to his FINRA BrokerCheck report, Burroughs was reportedly affiliated with Lincoln Investment in Torrington, CT from 2012 until December 2019 when he was discharged for the above allegations.
Burroughs’s broker report indicates that 20 customer complaints have reportedly been filed against him during his 33 year stint in the securities industry. Allegations include improper sales practices and misrepresentations, among others.
Potential Lawsuits to Recover Financial Losses
The White Law Group continues to investigate potential securities fraud claims involving the liability his former employers may have for failure to properly supervise Lester “Chad” Burroughs.
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 have suffered losses investing with Lester “Chad” Burroughs, please call the securities fraud attorneys at The White Law Group at 888-637-5510 for a free consultation.
The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois.
For more information on The White Law Group, and its representation of investors, please visit www.WhiteSecuritiesLaw.com.