SEC: Ex-Sentinel rep defrauded widow of 9/11 victim
James J. Konaxis, a former broker, has been charged with defrauding the widow of a victim of the Sept. 11, 2001, attack on the Pentagon of much of her victim compensation settlement money
James J. Konaxis, a former broker, has been charged with defrauding the widow of a victim of the Sept. 11, 2001, attack on the Pentagon of much of her victim compensation settlement money.
The Securities and Exchange Commission said last week that it had charged the Beverly, Mass.-based broker with churning the victim’s accounts, which fell to about $1.6 million in value, from $3.7 million, between April 2008 and last May. During that time, Mr. Konaxis earned about $550,000 in commissions on the accounts of the victim, who was identified only as “S.T.”
He has consented to a partial judgment barring him from participating in any penny stock offering. The SEC also will seek disgorgement of any gains plus prejudgment interest and a monetary penalty.
The SEC said that it is conducting separate administrative proceedings against Mr. Konaxis in which he has consented to be barred from association with any broker-dealer, investment adviser, municipal-securities dealer or transfer agent. At the time of the fraud, he worked as a registered representative at broker-dealer Sentinel Securities Inc.
A spokeswoman for Sentinel Securities declined to comment.
A call to James Konaxis in Beverly wasn’t returned.
E-mail Lavonne Kuykendall at [email protected].
Learn more about reprints and licensing for this article.
