Boston firm charged in real estate investment fraud

Regulator says $5 million of investor money lost in tenancy-in-common deals, $9 million siphoned off by principals
JUN 27, 2014
A Boston investment firm is being charged with fraudulent sales of real estate investments to senior citizens. Secretary of the Commonwealth William F. Galvin filed a complaint today against Cabot Investment Properties, along with its principals Carlton P. Cabot and Timothy J. Kroll. Mr. Galvin charged that the tenancy-in-common investments to elderly investors were fraudulent. According to the administrative complaint, Massachusetts residents who were looking for a means of retirement income invested more than $5 million in eight of the TICs. The defendants were also charged with siphoning $9 million into their personal bank accounts to use for a “lavish lifestyle in Manhattan.” The complaint goes on to say that Mr. Cabot and Mr. Kroll “artfully fabricated an air of prominence by associating themselves with the established names of the New England Cabot family as well as with the bona fide real estate firm known as Cabot Properties.” The complaint said Mr. Cabot's mother married into the Cabot family, and though there is no connection to the real estate firm, used the connection for a better image. Attempts to contact Mr. Cabot and Mr. Kroll for comment were unsuccessful. The company's website and phone numbers are inactive.

Latest News

Merrill lands four advisor teams as May recruiting data shows firm's two-way churn
Merrill lands four advisor teams as May recruiting data shows firm's two-way churn

Merrill's latest hires span Colorado to Louisiana, even as industry-wide recruiting data suggests the firm is losing almost as many advisors as it gains.

Fund manager sues Kandeo, alleges $100 million FinSocial loss
Fund manager sues Kandeo, alleges $100 million FinSocial loss

The $36 million buy allegedly hid inflated books and a $50 million diversion.

Advisor gets $200,000 from Ameriprise in 'emotional distress' lawsuit
Advisor gets $200,000 from Ameriprise in 'emotional distress' lawsuit

“An award citing emotional distress is very unusual,” an industry executive said.

Workplace financial education linked to stronger financial habits, but participation remains low
Workplace financial education linked to stronger financial habits, but participation remains low

New EBRI research found workers who participated in employer financial education reported higher confidence, literacy and financial satisfaction.

The rise of the super advisor: How AI is redefining competitive advantage in wealth management
The rise of the super advisor: How AI is redefining competitive advantage in wealth management

Beyond operational excellence, the winning advisors of the future are the ones who can reach across multiple disciplines without discarding specialist skills.

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