Manhattan fund manager charged with misappropriating $1.5 million

Donald LaGuardia, who headed defunct L-R Managers, faces 20 years in prison.
DEC 18, 2019
Donald LaGuardia, the co-founder and chief executive of the now-bankrupt investment firm, L-R Managers, has been arrested and charged with securities fraud, wire fraud and investment adviser fraud in connection with his operation of the firm. [More:Investment adviser arrested and charged in $105 million securities fraud] An indictment unsealed by the U.S. Attorney's office in New York said that Mr. LaGuardia, of Lavallette, N.J., misappropriated more than $1.5 million from private investment funds managed by his firm over several years and used the stolen money to finance his personal and business expenses. [Recommended video:Why advisers are slow to recognize the world moving towards ESG] According to the allegations contained in the Indictment, from about 2013 through 2017, Mr. LaGuardia solicited millions of dollars from investors for the LR Global Frontier Master Fund and two related feeder funds that focused on investments in "frontier" markets in Latin America, Central and Eastern Europe, the Middle East, Africa, and Asia. Instead of investing the money in the funds, Mr. LaGuardia misappropriated investors' money to finance L-R Managers' payroll, to pay rent for its office space on Park Avenue in Manhattan, and pay hundreds of thousands of dollars in charges on the firm's credit card, the indictment said, noting that at least $191,000 of the misappropriated money went directly to Mr. LaGuardia personally. [More:SEC highlights enforcement actions involving advisers and brokers] He faces a maximum sentence of 20 years in prison on each of the securities and wire fraud counts and a maximum sentence of five years in prison on the investment adviser fraud count.

Latest News

Advisor moves: RBC swipes $1.7B UBS team, Baird duo departs for LPL's Linsco channel
Advisor moves: RBC swipes $1.7B UBS team, Baird duo departs for LPL's Linsco channel

RBC Wealth Management's latest move in New York adds an elite eight-member team to its recently opened Westchester office.

Stifel star broker, Chuck Roberts, leaves firm under cloud of investor complaints
Stifel star broker, Chuck Roberts, leaves firm under cloud of investor complaints

Stifel – so far - is on the hook for more than $166 million in damages, legal fees and settlements in investor complaints involving Roberts, a 35-year industry veteran.

iCapital secures $820M in latest funding, hits $7.5B
iCapital secures $820M in latest funding, hits $7.5B

The giant alt investments platform's latest financing led by T. Rowe Price and SurgoCap Partners, along with State Street, UBS, and BNY, will fuel additional growth on multiple fronts.

Merrill Lynch on the hook for $3.7M after clients claimed sale of unsuitable private equity
Merrill Lynch on the hook for $3.7M after clients claimed sale of unsuitable private equity

Some investors recently have seen million dollar plus decisions by FINRA arbitration panels involving complex products decisions go their way.

What does it take to feel 'financially comfortable' or 'wealthy' in 2025?
What does it take to feel 'financially comfortable' or 'wealthy' in 2025?

New report shines a light on how Americans view wealth today.

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.