Unregistered South Carolina adviser get 6 years in prison for fraud

Melvin Wimmer was also ordered to pay more than $3 million in restitution to clients.

OCT 04, 2018

By Bruce Kelly

Melvin Wimmer, an unregistered investment adviser in South Carolina who pled guilty to one count of securities fraud in May, was sentenced Tuesday to 75 months in prison. He was also ordered to pay more than $3 million in restitution to clients. "Evidence uncovered in the investigation established that in 2007, Wimmer started an investment firm in Greenwood called Cornerstone Capital," according to a statement from the Department of Justice. "From 2010 to 2017, approximately twenty-five individuals invested $3.6 million with Wimmer. Wimmer pooled the money into one bank account, and he invested in high-risk securities and futures contracts." "Wimmer committed fraud by issuing fraudulent account statements to his investors," according to the statement. "Of the $3.6 million invested, Wimmer lost approximately $3 million. Much of this money came from the investors' retirement savings." The Securities and Exchange Commission in August barred Mr. Wimmer from the securities industry. Mr. Wimmer "knowingly and willfully devised a scheme and artifice to defraud and to obtain money and property by means of false and fraudulent pretenses, representations and promises in connection with the purchase and sale of a security," the SEC said in its administrative proceeding. Mr. Wimmer's attorney, David Aylor, was not available Thursday afternoon to comment.

Summit Wealth exits Commonwealth prior to LPL buyout to become RIA

As Commonwealth advisors weigh their futures following the firm’s sale, Summit Wealth Group is charting its own course as an independent RIA with $2.1 billion in assets, moving to SEI's custodian platform.

12 of the best low-risk investments for preserving capital and decent returns

In today's volatile market, low-risk investments are more essential than ever. Uncover proven strategies U.S. advisors use to preserve capital and deliver steady returns.

UBS, as expected, losing financial advisors in the US; headcount drops 3.2% YoY

Toward the end of last year, UBS said it was redrawing its pay plan for advisors, but “every time one of the big firms like UBS tinkers with the advisors’ compensation, some of them say, that’s it, that’s the last straw,” recruiter Danny Sarch said.