An investment advisor and owner of Broidy Wealth Advisors LLC has been sentenced to 3½ years in prison for using his business to bilk customers out of $1.5 million.
Beverly Hills, California investment advisor Marc Broidy was sentenced for the misappropriation of stock held in trusts and withdrawing excess management fees, costing his clients millions. According to the filed complaint, Broidy used his company, Broidy Wealth Advisors, to take advantage of friends and family friends.
Broidy Wealth Advisors Exec Pleads Guilty
In March of this year, Broidy pled guilty to one count of fraud. In a parallel action, the U.S. Securities and Exchange Commission settled a lawsuit with Broidy, where he agreed to pay a settlement of approximately $1.7 million.
From November 2010 to July 2016, Broidy was given discretionary authority to buy and sell securities in his clients’ brokerage accounts and was allowed to deduct a set percentage as management fees. According to prosecutors, instead of deducting the agreed-upon amount Broidy stole more than $640,000 in excess fees from three clients. To hide the misconduct, he falsified IRS reports to reflect management fees far less than what was deducted.
When the stolen fees were discovered and Broidy was confronted, he sold $865,000 worth of stock held in trust accounts of another client for repayment. He also used the funds for personal expenses, including credit cards bills, mortgage payments and the lease of two luxury cars.
Are You a Victim of Stockbroker Misconduct?
If you lost money investing with Broidy Wealth Advisors or are the victim of stockbroker misconduct, contact a qualified securities fraud attorney today.
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If you are looking for an attorney to review your rights and options, the securities fraud lawyers at Dimond Kaplan & Rothstein, P.A. have recovered more than $100 million from banks and brokerage firms for their wrongful actions.
With offices in Los Angeles, our securities fraud attorneys represent clients throughout Los Angeles County, including Beverly Hills, Santa Monica, Brentwood, West Hollywood, Long Beach, El Segundo, Bel-Air, and Malibu, and can help you recover your investment losses.