SEC charges barred broker with masterminding $6 million real estate scam

Leonard Vincent Lombardo, who has been barred from the securities industry by Finra for about 20 years, allegedly defrauded 100 investors

Sep 29, 2017 @ 5:18 pm

By InvestmentNews

The Securities and Exchange Commission has charged former broker Leonard Vincent Lombardo, his company and his business partner in an alleged real estate investment scheme that took $6 million from retirees and other investors.

The SEC alleges that Leonard Vincent Lombardo, who has been barred from the securities industry by Finra for about 20 years, operated the scheme from behind the scenes at his Long Island-based company, The Leonard Vincent Group, with assistance from its CFO Brian Hudlin. Mr. Lombardo once worked at Stratton Oakmont, which was expelled by the Financial Industry Regulatory Authority in 1998.

(More: SEC charges adviser with stealing from clients, committing identity fraud on elderly)

According to the SEC's complaint, more than 100 investors were defrauded with false claims that their money would be invested in distressed real estate, and some were told their investments had increased by more than 50% in a matter of months when in fact there were no actual earnings on their investments. Mr. Lombardo allegedly invested only a small fraction of the investor money in real estate and used the bulk of it for separate business ventures in the cigarette industry and personal expenses such as car payments, marina fees and visits to tanning salons.

The SEC said it received complaints from investors about how their investments were being handled, and the agency identified the perpetrators and gathered evidence to hold them accountable.

(More: Lynn Tilton wins SEC fraud trial)

The Leonard Vincent Group and Messrs. Lombardo and Hudlin have agreed to settlements that are subject to court approval.

Mr. Lombardo and his firm agreed to pay disgorgement of $5.88 million. He also pled guilty in a parallel criminal case brought by the U.S. Attorney's Office for the Eastern District of New York.

Without admitting or denying the SEC's allegations, Mr. Hudlin agreed to pay a $40,000 penalty.


What do you think?

View comments

Recommended for you

Sponsored financial news

Featured video


Diversity & Inclusion Awards: 2018 nominations are open

Editor Fred Gabriel and special projects editor Liz Skinner discuss the nomination process for InvestmentNews' inaugural Diversity & Inclusion awards.

Latest news & opinion

Cetera reportedly exploring $1.5 billion sale

The company confirmed it's talking to investment bankers to 'explore how to best optimize [its] capital structure at lower costs.'

SEC Chairman Jay Clayton outlines goals for a new fiduciary standard

Rule should provide clarity on role of adviser, enhanced investor protection and regulatory coordination.

Advisers bemoan LPL's technology platform change

Those in a private LinkedIn chat room were sounding off about fears the independent broker-dealer will require a move to ClientWorks before it is fully ready.

Speculation mounts on whether others will follow UBS' latest move to prevent brokers from leaving

UBS brokers must sign a 12-month non-solicit agreement if they want their 2017 bonuses.

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.


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 It'll help us continue to serve you.

Yes, show me how to whitelist

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


Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print