The
Financial Industry Regulatory Authority Inc. last week barred two brokers in separate actions, charging that they ran Ponzi schemes that victimized dozens of investors, including the elderly or mentally and physically disabled.
Finra barred Oren Eugene Sullivan Jr. of Rock Hill, S.C., for allegedly misappropriating $3.7 million in a Ponzi scheme involving 30 clients.
Among the victims were 15 widows, two with Alzheimer's and an individual with developmental disabilities.
At least eight of the victims were over 80.
Mr. Sullivan was a broker for New York Life Securities LLC.
From 1988 to 2008, Mr. Sullivan told his victims that he would invest their money in promissory notes or other financial products, according to Finra,
Instead, he took the money and used it himself, buying cars and paying for college tuition for his children, Finra said in a statement.
“As soon as New York Life learned of Sullivan's activities, the company terminated his agent contract and notified the authorities of his conduct,” William Werfelman, spokesman for New York Life, wrote in an e-mail.
“The company fully investigated the matter and reached out to all of Sullivan's clients, meeting with them personally and reimbursing victims of his Ponzi scheme who mistakenly thought they had invested with New York Life. Our total settlement with clients was in excess of $2.1 million.”
Finra also barred William Walter Spencer Sr. of Franklin, Tenn., who allegedly took nearly $2 million from elderly members of his church and from customers of his former employer, Wiley Bros.-Aintree Capital LLC of Nashville, Tenn., from 1997 to 2008. Mr. Spencer was employed by Wiley Bros. from 2002 to 2008.
Mr. Spencer encouraged the victims to invest in promissory notes and promised them a return of 10% to 12%, the statement said.
He knew that he did not have the liquid assets or income needed to pay the interest, Finra found.
In settling the matters, neither Mr. Spencer nor Mr. Sullivan admitted or denied the charges, but consented to Finra's findings.
They were not available for comment. Neither was a spokesman for Wiley Bros.-Aintree Capital.
E-mail Sue Asci at [email protected].
