The Securities and Exchange Commission charged a former
UBS Wealth Management Americas broker for allegedly defrauding several elderly clients, including a blind couple, as part of a five-year Ponzi scheme.
The SEC claims Donna Tucker misappropriated more than $730,000 from her clients from January 2008 until April 2013, while she was at
UBS. She used the money to pay for vacations, three cars, clothing and a country club membership, according to the SEC's complaint, while misleading clients about the status of their funds, the SEC said.
“[Ms.] Tucker engaged in unauthorized trading and other financial transactions, made misrepresentations to such customers about their investment accounts, and forged brokerage banking and other documents,” the SEC's complaint said.
(See also: Finra kicks out broker-dealer, bars CEO for Ponzi scheme that snared pro athletes)
In the case of one blind couple, Ms. Tucker allegedly concealed the theft of nearly $350,000 by convincing them to conduct their banking online and receive electronic statements, according to the SEC.
“[Ms.] Tucker knew that they could neither access nor receive their statements,” the SEC said.
An attorney who represented Ms. Tucker in a separate case, James Cargill, did not respond to phone calls seeking comment.
UBS spokesman Gregg Rosenberg did not respond to an email requesting comment.
Ms. Tucker resigned from UBS in April 2013 while the firm was investigating customer complaints of misappropriated funds. After an internal review, UBS reimbursed several customers, according to the SEC.
Ms. Tucker obtained the $730,000 by forging checks, falsifying brokerage statements and taking out unauthorized margin loans on customer accounts to repay other accounts, the SEC said.
The
Financial Industry Regulatory Authority Inc. barred Ms. Tucker in September 2013.
She began her career with A.G. Edwards & Sons Inc., which is now part of
Wells Fargo & Co., in 2003, according to Finra records.
UBS paid Ms. Tucker an incentive to join the firm in 2007. In May, Finra ordered Ms. Tucker to repay UBS the remaining balance on that and two other loans, which totaled $52,375, according to an arbitration award.
