Thomas Brenner, the former CEO of a broker-dealer that was expelled from the industry in 2017, is facing seven federal fraud charges linked to sales of private placement securities that purportedly financed medical laboratory developments.
According to a statement Tuesday from the Department of Justice, Brenner, 58, was the president of First American Securities Inc., of Orrville, Ohio.
The Financial Industry Regulatory Authority Inc. expelled First American Securities in 2017 after the broker-dealer failed to pay more than $300,000 in fines and disgorgement of commissions related to the sale of private placements that were "rife" with violations, according to the firm's BrokerCheck report.
In March 2015, Brenner and other persons allegedly conspired to recruit Brenner's clients to invest in the private placements, United RL Capital Services, according to the Department of Justice. Instead of apportioning the investors’ money as promised, Brenner allegedly used these funds for his benefit, including large purchases related to racecars and to pay taxes, according to the indictment.
Brenner's attorney, Carolyn Kucharski, did not return a call Wednesday to comment.
Brenner faces seven charges: conspiracy to commit mail and wire fraud, conspiracy to commit securities fraud, mail fraud, wire fraud, securities fraud and engaging in a monetary transaction in property derived from criminal activity.
In 2018, the Securities and Exchange Commission brought charges against five men, including Brenner, and three connected entities for allegedly perpetrating a $102 million Ponzi scheme that defrauded more than 600 investors.
The new regional leader brings nearly 25 years of experience as the firm seeks to tap a complex and evolving market.
The latest updates to its recordkeeping platform, including a solution originally developed for one large 20,000-advisor client, take aim at the small to medium-sized business space.
David Lau, founder and CEO of DPL Financial Partners, explains how the RIA boom and product innovation has fueled a slow-burn growth story in annuities.
Crypto investor argues the federal agency's probe, upheld by a federal appeals court, would "strip millions of Americans of meaningful privacy protections."
Meanwhile in Chicago, the wirehouse also lost another $454 million team as a group of defectors moved to Wells Fargo.
Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.
Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.