Ex-Sentinel Securities rep defrauded 9/11 widow: SEC

James J. Konaxis, a former broker, has been charged with defrauding the widow of a victim of the Sept. 11, 2001, attack on the Pentagon of much of her victim compensation settlement money. The Securities and Exchange Commission said today that it charged the Beverly, Mass.-based rep with churning the victim's accounts, which fell to about $1.6 million in value from $3.7 million between April 2008 and last May. During that time, Mr. Konaxis earned about $550,000 in commissions on the accounts of the victim, who was identified only as “S.T.” He has consented to a partial judgment barring him from participating in any penny stock offering. The SEC also will seek disgorgement of the ill-gotten gains plus prejudgment interest and a monetary penalty. The SEC said that it is conducting separate administrative proceedings against Mr. Konaxis in which he has consented to be barred from association with any broker-dealer, investment adviser, municipal-securities dealer or transfer agent. At the time of the fraud, he worked as a registered representative at broker-dealer Sentinel Securities Inc. Phone calls to Sentinel Securities and to a phone number listed under James Konaxis in Beverly seeking comment weren't immediately returned.