New York RIA head sentenced to 13 years for Ponzi scheme

New York RIA head sentenced to 13 years for Ponzi scheme
Court also orders Hector May to pay $8.4 million in restitution.
AUG 01, 2019

The head of a suburban New York RIA, Hector May, who pleaded guilty last December to stealing $11.5 million from investors in a Ponzi scheme, has been sentenced to 13 years in prison and ordered to pay $8.4 million in restitution. (More:Securities America hit with lawsuit seeking $18 million in damages) Mr. May, 77, of Orangeburg, N.Y., who headed Executive Compensation Planners, induced more than 15 clients to turn over money from their securities accounts under the false pretense that he would use the money to purchase bonds and other investments on their behalf. Instead, he used the money for personal and business expenses and to pay back other investors. In December, he confessed to one count of conspiracy to commit wire fraud and one count of investment adviser fraud. U.S. District Court Judge Vincent Bricetti said that he was not adding a fine to the sentence because "the defendant should use whatever money he has for repaying the victims," the news site LoHud.com reported.

Latest News

Advisor says retirement plan defaults still target an average
Advisor says retirement plan defaults still target an average

ERISA Investment Fiduciary Philip Chao says most retirement plans use target date funds as a one-size-fits-all default that ignores individual circumstances

Ex-broker in Florida gets more than six years for stealing $2 million from senior
Ex-broker in Florida gets more than six years for stealing $2 million from senior

Eric J. Stone was fired by Fidelity in 2021 after facing claims he took loans from clients.

Vistria takes majority stake in Curi Capital in fresh RIA deal
Vistria takes majority stake in Curi Capital in fresh RIA deal

Chicago-based Curi Capital gets new majority owner as $14 billion RIA eyes acquisitions and expanded family office services

WealthReach, VastAdvisor tie-up takes aim at advisors' cold outreach problem
WealthReach, VastAdvisor tie-up takes aim at advisors' cold outreach problem

Partnership pairs organic lead detection with paid ad targeting to help end "spray-and-pray" marketing for growth-seeking advisory firms.

LPL taps Wells Fargo vet as new chief technology and information officer
LPL taps Wells Fargo vet as new chief technology and information officer

Jonathan Lewis joins the wealth management giant as it proceeds with a $2 billion AI and technology push for advisors.

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