A federal judge has ordered former Transamerica representative Scott Allen Fries to pay over $747,000 for defrauding at least ten investors, according to FinancialAdvisor.
The Securities and Exchange Commission charged Fries, 56, with misconduct that started in January 2016. The SEC’s complaint said Fries solicited and received funds from brokerage customers and other individuals for investments in securities, taking in at least $458,000 over the next three years. Fries then allegedly deposited the money into his personal bank accounts and used it for his own expenses, including mortgage payments, credit card bills and loans.
The SEC said Fries lied to investors about the status of their investments, created and distributed false account statements that purported to show profitable investments, paid off an investor couple who found out their account statement was fake, and then lied to his employer about receiving investment funds from his brokerage customers.
The U.S. District Court for the Southern District of Ohio entered a final judgment against Fries recently that enjoined him from violating the antifraud provisions of Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and Sections 206(1) and 206(2) of the Investment Advisers Act of 1940. He was ordered to pay disgorgement of $428,334 plus prejudgment interest of $110,548 and a civil penalty of $208,500.
Lewitas Hyman routinely represents investors harmed when financial professionals and their firms engaged in misconduct that caused their clients investment losses. Our team includes lawyers who have worked for large financial institutions, including Morgan Stanley and UBS Financial Services, and regulatory bodies such as the SEC. If you think your financial professional or firm engaged in misconduct that caused you investment losses, contact us at (888) 655 6002 or through our online contact form for a no-cost evaluation of your matter.