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

SEC bars ex-broker who sold clients phony private equity fund
SEC bars ex-broker who sold clients phony private equity fund

Rajesh Markan earlier this year pleaded guilty to one count of criminal fraud related to his sale of fake investments to 10 clients totaling $2.9 million.

The key to attracting and retaining the next generation of advisors? Client-focused training
The key to attracting and retaining the next generation of advisors? Client-focused training

From building trust to steering through emotions and responding to client challenges, new advisors need human skills to shape the future of the advice industry.

Chuck Roberts, ex-star at Stifel, barred from the securities industry
Chuck Roberts, ex-star at Stifel, barred from the securities industry

"The outcome is correct, but it's disappointing that FINRA had ample opportunity to investigate the merits of clients' allegations in these claims, including the testimony in the three investor arbitrations with hearings," Jeff Erez, a plaintiff's attorney representing a large portion of the Stifel clients, said.

SEC to weigh ‘innovation exception’ tied to crypto, Atkins says
SEC to weigh ‘innovation exception’ tied to crypto, Atkins says

Chair also praised the passage of stablecoin legislation this week.

Brooklyn-based Maridea snaps up former LPL affiliate to expand in the Midwest
Brooklyn-based Maridea snaps up former LPL affiliate to expand in the Midwest

Maridea Wealth Management's deal in Chicago, Illinois is its first after securing a strategic investment in April.

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.