Two Mass. brokers face complaint over alleged Ponzi scheme

Massachusetts regulators allege two Newton financial advisers and their company connected to a Framingham man's alleged Ponzi scheme have been operating as unregistered brokers.
JAN 11, 2010
By  Bloomberg
Massachusetts regulators allege two Newton financial advisers and their company connected to a Framingham man's alleged Ponzi scheme have been operating as unregistered brokers. As part of a civil complaint, Secretary of State William Galvin is seeking a cease-and-desist order for Jay Fialkow and Jeffrey Ross and their company, RossFialkow Capital Partners LLP. Authorities say the Newton men sold more than $4 million in promissory notes issued by uniform contractor Richard Elkinson to at least 70 investors. Federal prosecutors have charged Elkinson with running a Ponzi scheme that stole about $29 million from 130 victims. The Secretary of State's office says Ross and Fialkow are not registered to sell securities in Massachusetts. A message left at RossFialkow's office was not immediately returned Wednesday.

Latest News

Maryland bars advisor over charging excessive fees to clients
Maryland bars advisor over charging excessive fees to clients

Blue Anchor Capital Management and Pickett also purchased “highly aggressive and volatile” securities, according to the order.

Wave of SEC appointments signals regulatory shift with implications for financial advisors
Wave of SEC appointments signals regulatory shift with implications for financial advisors

Reshuffle provides strong indication of where the regulator's priorities now lie.

US insurers want to take a larger slice of the retirement market through the RIA channel
US insurers want to take a larger slice of the retirement market through the RIA channel

Goldman Sachs Asset Management report reveals sharpened focus on annuities.

Why DA Davidson's wealth vice chairman still follows his dad's investment advice
Why DA Davidson's wealth vice chairman still follows his dad's investment advice

Ahead of Father's Day, InvestmentNews speaks with Andrew Crowell.

401(k) participants seek advice, but few turn to financial advisors
401(k) participants seek advice, but few turn to financial advisors

Cerulli research finds nearly two-thirds of active retirement plan participants are unadvised, opening a potential engagement opportunity.

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.

SPONSORED Beyond the dashboard: Making wealth tech human

How intelliflo aims to solve advisors' top tech headaches—without sacrificing the personal touch clients crave