Wisconsin advisor pulled $1.9 million fraud on clients

Wisconsin advisor pulled $1.9 million fraud on clients
The advisor, Anthony B. Liddle, 40, was barred from the securities industry last June by the Financial Industry Regulatory Authority Inc.
JAN 25, 2023

The Securities and Exchange Commission Tuesday charged a Wisconsin financial advisor with defrauding 13 clients of $1.9 million and also misrepresenting the risk of GWG bonds and other investments, claiming those investments were low risk.

The advisor, Anthony B. Liddle, 40, was barred from the securities industry last June by the Financial Industry Regulatory Authority Inc. after he failed to cooperate with Finra's investigation into the matter. Calls to Liddle's firm, Prosper Wealth Management, or PWM, Wednesday morning could not be completed. The firm had $15.7 million in client assets, according to its most recent Form ADV.

GWG Holdings Inc., which sold $1.6 billion in bonds backed by life settlements through a network of independent broker-dealers, said in April it had voluntarily filed for Chapter 11 bankruptcy protection. Investors don't know what the L bonds are worth.

From at least June 2019 and continuing through May 2022, Liddle "conducted a fraudulent scheme that defrauded at least 13 of his advisory clients, most of whom were senior citizens," according to the SEC. "As part of the scheme, Liddle also made misrepresentations to advisory clients. Liddle followed a common pattern during the scheme."

Liddle directed clients to sell positions in securities and then to invest in the GWG bonds and other riskier investments, according to the SEC.

"First, Liddle misrepresented the risk of GWG L Bonds and other similar investments, and claimed the offered security was lower-risk than existing client investments," according to the SEC's complaint. "Based on Liddle’s misrepresentations, certain of his advisory clients were induced to sell, or directed Liddle to sell, existing securities holdings."

Liddle would then tell clients to send their newly available funds, including some who held funds not managed by his firm, to the Prosper Wealth Management, under the guise that Liddle would use the funds to purchase the new, allegedly lower-risk security on the clients’ behalf.

In the end, he stole the money, according to the SEC.

"Instead, Liddle misappropriated the approximately $1.9 million clients sent directly to PWM, never purchasing any investments as they requested," according to the SEC complaint. "Further, in order to
maintain the scheme, Liddle fabricated statements and made 'interest payments' purporting to be returns on client investments, but were in fact made by Liddle using client funds."

Latest News

Edward Jones announces C-suite shakeup with eye toward next chapter
Edward Jones announces C-suite shakeup with eye toward next chapter

The leadership changes coming in June, which also include wealth management and digital unit heads, come as the firm pushes to offer more comprehensive services.

Harvard muni bonds a buy amid battle with Trump White House, Barclays says
Harvard muni bonds a buy amid battle with Trump White House, Barclays says

Strategist sees relatively little risk of the university losing its tax-exempt status, which could pose opportunity for investors with a "longer time horizon."

The great wealth transfer demands a wealth management revolution
The great wealth transfer demands a wealth management revolution

As the next generation of investors take their turn, advisors have to strike a fine balance between embracing new technology and building human connections.

Independent Financial Group taps industry veteran Keefe as new president, COO
Independent Financial Group taps industry veteran Keefe as new president, COO

IFG works with 550 producing advisors and generates about $325 million in annual revenue, said Dave Fischer, the company's co-founder and chief marketing officer.

Net Positive Consortium gains momentum with new members, first strategic partner
Net Positive Consortium gains momentum with new members, first strategic partner

Five new RIAs are joining the industry coalition promoting firm-level impact across workforce, client, community and environmental goals.

SPONSORED Compliance in real time: Technology's expanding role in RIA oversight

RIAs face rising regulatory pressure in 2025. Forward-looking firms are responding with embedded technology, not more paperwork.

SPONSORED Advisory firms confront crossroads amid historic wealth transfer

As inheritances are set to reshape client portfolios and next-gen heirs demand digital-first experiences, firms are retooling their wealth tech stacks and succession models in real time.