Former broker gets 30 months for defrauding investors

Stephen Eubanks of Hingham, Mass., claimed to be an RIA running a hedge fund

Jul 12, 2017 @ 12:34 pm

By InvestmentNews

A federal court in Boston has sentenced Stephen Eubanks of Hingham, Mass., to 30 months in prison for defrauding investors of $437,000.

Mr. Eubanks, who also was ordered to pay that sum in restitution to the more than 20 people he defrauded, posed as a hedge fund manager at Eubiquity Capital, a firm he founded in February 2010. An article in The Patriot Ledger said that he took in more than $700,000 from investors through 2016.

Previously a registered representative with several large brokerage firms who had been fired in the wake of customer complaints and other disciplinary issues, Mr. Eubanks presented himself to acquaintances as a financial adviser running a hedge fund affiliated with Goldman Sachs, TD Ameritrade, UBS and Fidelity Investments, according to the U.S. attorney's office quoted in the story.

Mr. Eubanks invested some of his clients' money but used a significant portion to pay personal expenses, sometimes running the fund as a Ponzi scheme, the U.S. attorney's office said. He fabricated account statements if asked, or used statements from unrelated accounts, the story said.

Mr. Eubanks began his career with IDS Life Insurance Co. and American Express Financial Advisors, according to BrokerCheck. In 1994, he moved to Smith Barney, where he worked for over three years before moving to UBS, where he worked for close to seven years. In 2004, Mr. Eubanks joined Bear Stearns & Co. for one year before moving to Oppenheimer & Co. He separated from Oppenheimer due to a customer complaint in 2006.

According to his Brokercheck profile, Mr. Eubanks had three customer disputes listed that have been closed.

0
Comments

What do you think?

View comments

Recommended for you

Sponsored financial news

Featured video

INTV

Why some retirement plan advisers think Fidelity is invading their turf

InvestmentNews editor Frederick P. Gabriel Jr. and reporter Greg Iacurci talk about this week's cover story that looks at whether Fidelity Investments is stepping on the toes of retirement plan advisers.

Latest news & opinion

Maryland jumps into fiduciary fray with legislation requiring brokers to act in best interests of clients

Legislation requires brokers to act in the best interests of clients.

8 apps advisers love for getting stuff done

Smartphone apps that advisers are using in 2018 to run their business more efficiently.

Galvin's DOL fiduciary rule enforcement triggers industry plea for court decision

Plaintiffs warned the Fifth Circuit that Massachusetts' move against Scottrade signaled that the partially implemented regulation can raise costs for financial firms.

Social Security underpaid 82% of dually entitled widows and widowers

Agency failed to tell survivors that they could switch to a higher retirement benefit later.

Is Fidelity competing with retirement plan advisers?

As the Boston-based mutual fund giant expands the products and services it brings to the retirement market, some financial advisers say the firm is encroaching on their turf.

X

Hi! Glad you're here and we hope you like all the great work we do here at InvestmentNews. But what we do is expensive and is funded in part by our sponsors. So won't you show our sponsors a little love by whitelisting investmentnews.com? It'll help us continue to serve you.

Yes, show me how to whitelist investmentnews.com

Ad blocker detected. Please whitelist us or give premium a try.

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print