SEC charges former UBS broker with $4 million scam

SEC charges former UBS broker with $4 million scam
John Maccoll, who was fired from firm and barred by Finra, also faces criminal charges
AUG 10, 2018

The Securities and Exchange Commission has charged John Maccoll, a former broker with UBS in Birmingham, Mich., with running an investment scam in which he stole nearly $4 million from customers. According to the SEC's complaint, Mr. Maccoll used high-pressure sales tactics to solicit at least 15 of his customers — most of whom were elderly and retired — to invest in what he described as a highly sought-after private fund investment. Mr. Maccoll told them that the investment would allow them to diversify their portfolios, receive annual investment returns as high as 20%, and give them investment growth potential that was better than the growth they received in their brokerage accounts. In addition to alleging that those claims were false, the SEC complaint charges that Mr. Maccoll did not invest the customers' money but stole it for his own personal use. To conceal the scheme, he allegedly instructed his customers not to tell others about the purported fund investment, provided some of his customers with fake account statements reflecting fictitious returns, and paid over $400,000 in Ponzi-like payments to certain of the customers to keep the scheme alive. The U.S. Attorney's Office for the Eastern District of Michigan has filed criminal charges against Mr. Maccoll, who was discharged from UBS in March after failing to respond to an internal investigation into his conduct. The Financial Industry Regulatory Authority Inc. barred Mr. Maccoll for failing to respond for a request for information. (More: New tools to protect elderly from fraud, exploitation)

Latest News

Names of more B-Ds that sold deals of bankrupt Inspired Healthcare surface
Names of more B-Ds that sold deals of bankrupt Inspired Healthcare surface

Broker-dealers that sold the defunct securities backed by Inspired Healthcare generated more than $100 million in fees and commissions.

MetLife poll finds high-value home sales are becoming tax-planning events
MetLife poll finds high-value home sales are becoming tax-planning events

A new MetLife survey finds real estate professionals are increasingly steering clients toward tax experts as rising property values leave more sellers facing significant capital gains.

Kestra adds Raymond James recruiter to expand advisor hiring push
Kestra adds Raymond James recruiter to expand advisor hiring push

The independent broker-dealer expands its business development bench with a new recruiter and an internal promotion in the West.

Cerity Partners names Will Peng chief innovation officer
Cerity Partners names Will Peng chief innovation officer

The leading ultra-high-net-worth RIA joins other large wealth firms, including Raymond James and LPL, in creating executive roles focused on artificial intelligence strategy

SPONSORED Who builds the income when the pension disappears?

Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income

SPONSORED Why direct indexing stopped being optional

Direct indexing is on pace to outgrow ETFs and mutual funds. Northern Trust's Ken Lassner explains why the advisors who get it wish they had started sooner.