SEC bars New Jersey RIA over securities, adviser fraud

Larry Werbel had pleaded guilty to receiving kickbacks for touting stock

Jun 11, 2018 @ 2:07 pm

By InvestmentNews

The Securities and Exchange Commission has barred New Jersey adviser Larry Werbel, who in September 2017 pled guilty to one count of conspiracy to commit securities fraud and one count of investment adviser fraud.

Mr. Werbel, a resident of Milburn, N.J., owns and operates Evolution Partners Wealth Management, an investment adviser that was registered from 2011 through 2015.

In connection with his plea, Mr. Werbel, admitted that as a registered investment adviser with an office in Cleveland, Ohio, from 2011 through 2014, he introduced his clients to VGTel Inc., which he described as an "investment opportunity." He admitted that he "willfully failed to tell these clients that he was being compensated to recommend the purchase of VGTel securities … through an agreement with Ed Durante, a codefendant in the case."

Mr. Werbel also failed to inform clients that New Market Enterprises, the entity to which he directed his clients to send their money for the purchase of VGTel securities, was run and controlled by Mr. Durante, who Mr. Werbel knew at the time was a convicted felon.

(More: Brokers must pay clients $845,000 arbitration award)

0
Comments

What do you think?

View comments

Recommended for you

Featured video

Events

InvestmentNews celebrates diversity & inclusion in the financial advice business

Highlights of the Excellence in D&I Awards, showcasing the achievements of 26 individuals and firms that are moving the needle when it comes to diversity and inclusion.

Latest news & opinion

7 things advisers should do today to boost diversity and inclusion

Creating diversity and inclusion within financial advice firms is challenging, but these InvestmentNews Excellence in Diversity & Inclusion award winners have suggestions that firms can put into practice today

The midterm elections: What's at stake for financial advisers

A shift in control of the House could change the course of important issues, including the SEC advice rule, tax reform and retirement policies.

What to tell your clients after they've won the lottery

The current combined Mega Millions and Powerball jackpots are more than $850 million. What should you tell your clients if they have a winning ticket?

2019 Medicare premiums announced

Slight increase in Part B premium to $135.50 per month is in line with expectations.

7 ways states got tough with unregistered individuals and firms in 2017

Rise in digital currency frauds helped trigger a crackdown by state regulators.

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