SEC bars former broker imprisoned for $1.1 million fraud

Paul Elvidge, a former broker with Seacoast Investor Services and Cape Securities in Port St. Lucie, Fla., has been barred from the securities industry, the Securities and Exchange Commission said in an administrative proceeding. Mr. Elvidge pled guilty to eight counts of wire fraud in January 2014 and in November 2015 was sentenced to a prison term of 62 months, followed by three years of supervised release, and was ordered to pay almost $1.3 million in restitution. (More: SEC suspends former ARCP accounting officer Lisa McAlister) In connection with that plea, Mr. Elvidge admitted that from July 2010 through October 2012, he engaged in a scheme to defraud clients and used his position as a registered representative to transfer money from clients' brokerage accounts, which he had access to, to his own personal bank and brokerage accounts. He admitted to forging clients' signatures and preparing fraudulent authorization forms directing that funds be transferred to his accounts. He used the money — more than $1.1 million from 10 clients — to pay personal and business expenses, and to conduct day trades through a personal account. (More: Court orders RIA to pay nearly $2 million for defrauding athletes)