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

Ex-Texas advisor gets 11 years for Ponzi scheme, Travis Kelce among victims
Ex-Texas advisor gets 11 years for Ponzi scheme, Travis Kelce among victims

Siddharth Jawahar was sentenced 11 years in prison and $31M in restitution for running Swiftarc Capital fraud scheme

HSBC, Citi unveil new high-life and luxury offerings for affluent clients, family offices
HSBC, Citi unveil new high-life and luxury offerings for affluent clients, family offices

Wall Street banks expand wealth services as ultra-high-net-worth client demands extend further above and beyond investment management.

Cerity Partners enters Iowa with Gilbert & Cook deal
Cerity Partners enters Iowa with Gilbert & Cook deal

The acquisition of $2 billion Gilbert & Cook extends a buying spree for the ultra-high-net-worth firm that has already touched six states this year.

The financial industry has a saving problem
The financial industry has a saving problem

After years of encouraging sacrifice and delayed gratification, advisors have to do the next emotional lift: helping clients let go of a potentially harmful scarcity mindset.

Investment accounts fund nearly 7% of US household spending, JPMorgan finds
Investment accounts fund nearly 7% of US household spending, JPMorgan finds

A new JPMorganChase Institute report reveals how deeply stock market wealth now drives everyday American spending, especially for retirees.

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