Securities Fraud Investigation – Michael J. Frew (Mike Frew) – Wells Fargo
According to reports on Friday, former advisor Mike Frew was arrested and charged with wire fraud, mail fraud and money laundering for allegedly running a real estate Ponzi scheme.
Frew allegedly defrauded individuals beginning in 2010, telling numerous victims that he would invest their money into real estate investments, according to federal prosecutors in San Francisco.
Frew allegedly used the money on personal expenses, speculating on the stock market and repaying other victims a portion of their investments to hide the scheme.
According to prosecutors, the scheme involved allegedly convincing victims to wire money for real estate investments in areas that had recently been under distress due to natural disasters. Frew allegedly received over $380,000 from one couple who he promised a 10 percent return on investment, then used it for personal expenses.
Frew was reportedly arrested in Beatty, Nevada and arraigned in U.S. District Court in Las Vegas, Nevada, for two counts each of wire fraud, mail fraud and money laundering on July 26.
He reportedly faces a maximum sentence of 20 years for each count of wire fraud and mail fraud and 10 years for each count of money laundering, according to prosecutors. He also purportedly faces up to $250,000 in fines and additional restitution for the victims.
According to Frew’s BrokerCheck report, Frew was a registered representative with Wells Fargo during the alleged scheme. Frew worked in the Wells Fargo Advisors’ offices in San Francisco, CA from July 2003 until January 2014 when the firm opened an investigation into Frew’s activities. He has 10 customer disputes listed on his broker report.
Investigating Potential Claims
The White Law Group is investigating potential claims involving the liability that Frew’s employer may have for failing to properly supervising him.
Brokerage firms are required to properly supervise their advisors. They must ensure that those advisors are complying with applicable FINRA rules and regulations. If it can be demonstrated that Frew’s former employer failed to properly supervise him, the firm may be held responsible for the losses in a FINRA arbitration claim.
If you are concerned about your investments with Mike Frew and would like a free consultation to discuss your litigation options, please call The White Law Group at 1-888-637-5510.
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.