The Most Outrageous Investment Advisor Misconduct Of 2014
This past year saw investor funds continue to flow into the stock market and the control of the country’s more than 500,000 stockbrokers and investment advisors. While this was another banner year for the stock market, with gains from the S&P above 12%, it was, unfortunately, also a banner year for stockbroker misconduct.
What follows is a list of the most egregious broker/investment advisor stories from this past year. From an advisor charged with stealing from his own mother, to a former Soprano TV star’s spouse charged with penny stock fraud, these cases highlight the downside of financial advisors entrusted with OPM- Other People’s Money.
Now, for the top stories:
Allegedly Deceased Advisor Accused of $40 Million Fraud Found AliveAubrey Lee Price, 47, went missing in June 2012 shortly after revealing investor losses in a cryptic letter with suicidal overtones, according to authorities. He was declared dead by a court at his wife’s request later that year. But the former Georgia investment advisor, who was presumed dead after authorities said that he bilked clients out of $40 million in a private-placement fraud, was found alive in January, 2014. Mr. Price was sent back to court to face the criminal charges he eluded. “Advisor to the Stars” Charged with Credit Card TheftFormer financial advisor to the stars Dana Giacchetto was charged with fraud in federal court in Manhattan in February, facing allegations that he fraudulently spent more than $10,000 on purchases using someone else’s credit card.
The fraud charges stem back to February 2013. An unnamed man claimed that Mr. Giacchetto fraudulently used his American Express card to foot the bill for airline services, food and alcohol deliveries, moving company services and dental work, according to the complaint. Mr. Page 2 Giacchetto, before being disgraced and charged with fraud, previously managed money for celebrities including Leonardo DiCaprio and Cameron Diaz.
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