SEC charges barred broker with masterminding $6 million real estate scam

Leonard Vincent Lombardo, who has been barred from the securities industry by Finra for about 20 years, allegedly defrauded 100 investors.
SEP 29, 2017

The Securities and Exchange Commission has charged former broker Leonard Vincent Lombardo, his company and his business partner in an alleged real estate investment scheme that took $6 million from retirees and other investors. The SEC alleges that Leonard Vincent Lombardo, who has been barred from the securities industry by Finra for about 20 years, operated the scheme from behind the scenes at his Long Island-based company, The Leonard Vincent Group, with assistance from its CFO Brian Hudlin. Mr. Lombardo once worked at Stratton Oakmont, which was expelled by the Financial Industry Regulatory Authority in 1998. (More: SEC charges adviser with stealing from clients, committing identity fraud on elderly) According to the SEC's complaint, more than 100 investors were defrauded with false claims that their money would be invested in distressed real estate, and some were told their investments had increased by more than 50% in a matter of months when in fact there were no actual earnings on their investments. Mr. Lombardo allegedly invested only a small fraction of the investor money in real estate and used the bulk of it for separate business ventures in the cigarette industry and personal expenses such as car payments, marina fees and visits to tanning salons. The SEC said it received complaints from investors about how their investments were being handled, and the agency identified the perpetrators and gathered evidence to hold them accountable. (More: Lynn Tilton wins SEC fraud trial) The Leonard Vincent Group and Messrs. Lombardo and Hudlin have agreed to settlements that are subject to court approval. Mr. Lombardo and his firm agreed to pay disgorgement of $5.88 million. He also pled guilty in a parallel criminal case brought by the U.S. Attorney's Office for the Eastern District of New York. Without admitting or denying the SEC's allegations, Mr. Hudlin agreed to pay a $40,000 penalty.

Latest News

401(k) savings rate at new record high but balances are down slightly
401(k) savings rate at new record high but balances are down slightly

Quarterly analysis of retirement accounts highlights positive behavior.

JPMorgan mulls new asset lending scheme aimed at crypto ETF investors
JPMorgan mulls new asset lending scheme aimed at crypto ETF investors

Insiders say the Wall Street giant is looking to let clients count certain crypto holdings as collateral or, in some cases, assets in their overall net worth.

Fintech bytes: Future Capital adds RayJay alum to C-suite, Advyzon welcomes ex-Envestnet leader
Fintech bytes: Future Capital adds RayJay alum to C-suite, Advyzon welcomes ex-Envestnet leader

The two wealth tech firms are bolstering their leadership as they take differing paths towards growth and improved advisor services.

UBS 'wrongfully' fired Idaho advisor in 2021: FINRA panel
UBS 'wrongfully' fired Idaho advisor in 2021: FINRA panel

“We think this happened because of Anderson’s age and that he was possibly leaving,” said the advisor’s attorney.

Cetera Trust hires Fidelity vet Kerri Scharr for chief fiduciary officer role
Cetera Trust hires Fidelity vet Kerri Scharr for chief fiduciary officer role

The newly appointed leader will be responsible for overseeing fiduciary governance, regulatory compliance, and risk management at Cetera's trust services company.

SPONSORED Beyond the dashboard: Making wealth tech human

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

SPONSORED The evolution of private credit

From direct lending to asset-based finance to commercial real estate debt.