Federal authorities announced that an investment advisor in Long Island, New York, has pleaded guilty to a fraud scheme that took millions of dollars from his clients, Financial Advisor reports.
Vincent Camarda, the Chairman and Chief Executive Officer (CEO) of A.G. Morgan Financial Advisors, LLC (AGM), pleaded guilty to securities fraud and investment advisor fraud.
The U.S. Attorney’s Office for the Eastern District of New York stated that Camarda convinced investors to give him millions of dollars, then spent the money on plastic surgery for himself, jewelry, travel, and luxury goods, as well as paying down his credit card debt.
It was alleged that Camarda solicited funds from the victims by making material misrepresentations regarding the investment of their funds, including the risk profile. Camarda falsely represented that investments in the Camarda Funds were “safe” or “low-risk,” when, in fact, they were not. He also misrepresented the diversification of the investments to mislead investors into believing that their investments were safer than they actually were. In addition, he failed to disclose material conflicts of interest in connection with the investments. For example, Camarda never disclosed to the victims that he received compensation from a mining business in which he invested their funds. He also put client funds into a food service business owned by his relative and for which he served as president, without disclosing his relationship to the business.
Furthermore, prosecutors said Camarda misappropriated hundreds of thousands of dollars of the victims’ investments in the Camarda Funds and for his personal benefit through wire transfers. Over 300 clients were defrauded in the scheme, many of whom lost their life savings.
“We will aggressively prosecute investment advisors who betray their clients’ trust and commit crimes for their own financial gain,” stated United States Attorney Joseph Nocella Jr. “This defendant used a series of lies to lure clients, including elderly and other vulnerable individuals, into investing with him, all while enriching himself. Today’s guilty plea is an important step toward holding the defendant accountable for the substantial harm he has caused.”
When sentenced, Camarda faces a maximum sentence of 20 years’ imprisonment, as well as restitution of at least $160 million and forfeiture of over $6.6 million.
The Securities and Exchange Commission filed separate civil charges in federal court accusing Camarda, his associate James McArthur and their firm of orchestrating an overlapping offering fraud that raised at least $138 million from more than 400 investors.
The SEC alleges that from about mid-2020 through the end of 2023, Camarda and McArthur steered advisory clients into promissory notes issued by five private funds they controlled, telling investors the products were conservative and diversified. Instead it was alleged that four of the funds invested entirely in a single high-risk mining venture, while the fifth funneled money into a startup coffee shop owned by Camarda’s son.
When the underlying businesses defaulted in 2024 and the funds stopped making promised payments, investors lost about $123 million in principal, with additional losses tied to expected interest payments.
The SEC is seeking permanent injunctions, disgorgement of ill-gotten gains with interest, and civil penalties against Camarda, McArthur and their firm.
Hyman Cotter 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 Hyman Cotter at (833) 665-0784 or through our online contact form for a no-cost evaluation of your matter.
