New York Securities Lawyer Blog
Paul James Marshall (“Marshall”), a former Bear Stearns manager with over two decades in the wealth management industry, perpetrated a brazen fraud against clients through his registered investment advisory (“RIA”) firm Bridge Securities. Marshall had clients wire funds to JP Morgan, and make checks payable to JP Morgan, and then deposited those funds directly into Bridge Securities’ accounts. From there, he transferred the funds directly to checking accounts without ever even buying any securities with client funds.
Marshall went so far as to steal funds from a client dying of colon cancer who was in desperate financial condition. After the client passed away, Marshall pursued the insurance money, representing that he would manage it, while in fact using it for his own personal benefit. Marshall additionally charged the deceased’s relatives $5,000 in fees for tax-related work on the deceased clients account that he had never in fact performed.
Marshall falsified account statements by creating phony securities positions and investment returns. When clients attempted to redeem funds or seek information on their investments, Marshall either ignored them or lied to them. Federal prosecutors stated in the sentencing memorandum: “This case is not about mismanagement, poor investment decisions or bad luck, this is a case about outright theft from victims, many of whom were elderly, and the profound losses they suffered as a result.”
When Financial Advisors engage in fraud and criminal behavior and steal victim’s funds, often times the funds have been spent and are difficult to recover. In some instances, the custodian or clearing firm that was involved in holding client accounts for the RIA that defrauded clients can be held liable for losses caused by the criminal activities of the Financial Advisor.
The attorneys at Lax & Neville LLP have extensive experience in successfully prosecuting claims on behalf of customers who have suffered losses as a result of investment and securities fraud. If you are a victim of fraud, please contact Lax & Neville LLP today at (212) 696-1999 to schedule a consultation.