Former brokerage firm chief compliance officer charged with fraud

Former brokerage firm chief compliance officer charged with fraud
Faces both criminal and civil charges for allegedly funneling $500,000 of the $800,000 he allegedly scammed from investors to his brothers.
MAY 24, 2016
The former chief compliance officer of a brokerage firm was charged with fraud and money laundering for allegedly diverting money from overseas investors to family members in the Philippines. William Michael Quigley, 47, of Seaford, N.Y., faces both criminal and civil charges for funneling $500,000 of the $800,000 he allegedly scammed from investors to his two brothers in the Philippines, according to authorities. An indictment was unsealed Thursday, charging Mr. Quigley with conspiracry to commit wire fraud and money laundering conspiracy in connection with the investment scheme. He faces a maximum sentence of 20 years in prison. Mr. Quigley, who was the compliance director for the brokerage firm Trident Partners Ltd. in Westbury, N.Y., convinced foreign investors to invest in well-known U.S. companies such as Dell Inc., Berkshire Hathaway Inc. and BlackRock Inc., as well as start-ups on the verge of going public, according to the Securities and Exchange Commission, which charged Mr. Quigley with fraud. Instead of investing the funds, Mr. Quigley diverted them for his personal use and those of his brothers, Michael and Brian Quigley, according to authorities. They allegedly participated in the scheme by sending investors fake account statements using a fictitious firm name. The scheme went on for more than a decade, the SEC alleged. “We allege a classic situation of the fox guarding the hen house as William Quigley subverted his position of trust as compliance director and stole money from investors and his own firm,” said Andrew M. Calamari, director of the SEC's New York Regional Office. Mr. Quigley's attorney, Barry M. Bodetsky, was not available for comment. Trident Partners, was not aware of his fraudulent activity, according to information on Mr. Quigley's BrokerCheck report. "Once Trident Partners became aware of Mr. Quigley's suspicious activities, the firm terminated his employment and informed regulatory authorities," said Robert I. Rabinowitz, the attorney for Trident Partners, in a statement. "Trident Partners has confidence that the regulatory action that the SEC has taken is appropriate under the circumstances." At the SEC, the case will be heard by an administrative law judge, the agency said. Mr. Quigley is not licensed to act as a broker. In April, he was suspended for failing to respond to Finra's request for information. If he does not respond, he will be barred by the self-regulator on June 23, his BrokerCheck report states.

Latest News

Farther debuts AI investment proposal tool for advisors to win clients
Farther debuts AI investment proposal tool for advisors to win clients

"Im glad to see that from a regulatory perspective, we're going to get the ability to show we're responsible [...] we'll have a little bit more freedom to innovate," Farther co-founder Brad Genser told InvestmentNews.

Barred ex-Merrill Lynch advisor arrested in alleged $2.6M theft of former Miami Dolphin Pro Bowler
Barred ex-Merrill Lynch advisor arrested in alleged $2.6M theft of former Miami Dolphin Pro Bowler

Former advisor Isaiah Williams allegedly used the stolen funds from ex-Dolphins defensive safety Reshad Jones for numerous personal expenses, according to police and court records.

Are you optimally efficient?
Are you optimally efficient?

Taking a systematic approach to three key practice areas can help advisors gain confidence, get back time, and increase their opportunities.

Advisor moves: Father-son duo leaves Raymond James for LPL, RayJay adds Merrill Lynch alum in Florida
Advisor moves: Father-son duo leaves Raymond James for LPL, RayJay adds Merrill Lynch alum in Florida

Meanwhile, Osaic lures a high-net-worth advisor from Commonwealth in the Pacific Northwest.

Beacon Pointe adds six RIAs in two-month acquisition spree, boosting AUM by $2.7B
Beacon Pointe adds six RIAs in two-month acquisition spree, boosting AUM by $2.7B

The deals, which include its first stake in Ohio, push the national women-led firm up to $47 billion in assets.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

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.