Ex-Stanford advisers targeted by SEC: Reports

Ex-Stanford advisers targeted by SEC: Reports
Patrick Cruickshank is one of at least four former Stanford Group Co. financial advisers and executives who may be sued by U.S. securities regulators for fraud, according to the Financial Industry Regulatory Authority Inc. and a lawyer for the brokerage's underwriter.
DEC 13, 2011
Patrick Cruickshank is one of at least four former Stanford Group Co. financial advisers and executives who may be sued by U.S. securities regulators for fraud, according to the Financial Industry Regulatory Authority Inc. and a lawyer for the brokerage's underwriter. Cruickshank, who is now a registered financial adviser with IMS Securities in Austin, Texas, was told in May that the Securities and Exchange Commission “intends to recommend that the commission file an action” against him for alleged securities law violations at the financial services company founded by R. Allen Stanford, FINRA disciplinary records show. Danny Bogar, former head of the Stanford Group broker- dealer unit, has also been notified that the SEC may sue him as part of its investigation, according to the Financial Times. In May, Lloyd's of London lawyer Neel Lane, who handles requests for directors' and officers' insurance coverage by former Stanford brokers and executives, told a Houston judge that four ex-executives had been notified by the SEC that they might be sued in connection with the Stanford probe. Stanford, four former colleagues and three of his companies were accused by the SEC in February 2009 of running a “massive” Ponzi scheme that bilked investors of more than $7 billion through the sale of bogus certificates of deposit at Antigua-based Stanford International Bank. Deny Wrongdoing Stanford and three of the accused executives deny all wrongdoing and are fighting parallel criminal charges brought against them in June 2009. Stanford's former Chief Financial Officer James M. Davis pleaded guilty to the fraud scheme and is cooperating with the government. Neither Cruickshank nor his attorney Brad Foster immediately returned calls today seeking comment on the SEC notices. Bogar's attorney couldn't immediately be located. --Bloomberg News--

Latest News

Prediction markets are the new sports betting for young investors
Prediction markets are the new sports betting for young investors

Why younger clients are trading parlays for prediction markets and calling it investing

Samsung Life targets top stake in Principal Financial Group
Samsung Life targets top stake in Principal Financial Group

South Korea's largest life insurer is pursuing a $4.4 billion stake in PFG, one of the top three 401(k) providers in the US.

FP Alpha adds AI agent for future tax scenario planning
FP Alpha adds AI agent for future tax scenario planning

Advisors can prompt the AI agent to model a client's potential Roth conversions, home sales, income shifts, and state moves.

Archive Intel, Zocks pair up to tackle AI notetaker compliance gap
Archive Intel, Zocks pair up to tackle AI notetaker compliance gap

New integration flags non-compliant language in AI-generated meeting notes as regulators sharpen focus on advisor recordkeeping.

SEC alleges California fund managers ran $80 million 'Ponzi-like' scheme
SEC alleges California fund managers ran $80 million 'Ponzi-like' scheme

They settled the same day the SEC sued - but the penalty is still unset.

SPONSORED Direct indexing webinar targets tax-loss harvesting amid market swings

Northern Trust’s Ken Lassner shows advisors how to convert volatility into after-tax portfolio gains

SPONSORED Who builds the income when the pension disappears?

Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income