SEC bars former LPL broker who pleaded guilty to $4.9 million Ponzi

SEC bars former LPL broker who pleaded guilty to $4.9 million Ponzi
Norwalk, Conn., financial professional preyed on elderly clients
NOV 04, 2019
The Securities and Exchange Commission Friday barred from the securities industry a former LPL Financial broker who operated a Ponzi scheme that preyed on elderly clients. The agency's action came after James T. Booth pleaded guilty Oct. 22 in a New York federal court to one count of securities fraud. The indictment alleged that Mr. Booth misappropriated approximately $4.9 million from approximately 40 investors. The Financial Industry Regulatory Authority Inc. had previously barred Mr. Booth. "Many of [Mr.] Booth's clients and customers were unsophisticated investors, including seniors who ultilized [Mr.] Booth's services for their retirement savings," states the Sept. 30 SEC complaint filed in a Connecticut federal court. Mr. Booth, 74, lives in Norwalk, Conn., and is the owner of Booth Financial Associates. He was registered with LPL from February 2018 until the firm fired him in May. Mr. Booth was registered with Invest Financial Corp. from December 2005 through February 2018. [Recommended video: Why aren't people joining the financial advice industry?] Mr. Booth told his clients their funds would be used to purchase securities. Instead, he used the money to pay for business and personal expenses, including trips to casinos, and to pay other investors he lured into the rip-off. He conducted the Ponzi scheme from 2014 through 2019. The indictment says he made false promises of safe investments with high returns. [Investing in profitability, performance and people: Register today for our Top Advisory Firm Summit.] Among his victims was a recently widowed elderly investor who gave him money she had received from her late husband's pension. Another senior investor withdrew money from an annuity he created to care for a disabled sibling in order to invest with Mr. Booth. Mr. Booth had 34 regulatory disclosures during 28 years in the industry working for six firms, according to his BrokerCheck profile.

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.