Client Files $18 Million Lawsuit Against Securities America for Failing to Supervise Investment Adviser During Ponzi-Scheme

Posted on March 29th, 2019 at 12:59 PM
Client Files $18 Million Lawsuit Against Securities America for Failing to Supervise Investment Adviser During Ponzi-Scheme

From the Desk of Jim Eccleston at Eccleston Law LLC:

A client has filed a lawsuit against Securities America in the U.S. District Court for the Southern District of New York for failing to supervise investment adviser, Hector A. May, who recently pled guilty to orchestrating a Ponzi-scheme.

According to the complaint, beginning in 2003, Securities America failed to supervise May by ignoring “stark red flags” that would have exposed the Ponzi-scheme he was running. The lawsuit alleges that May cost his client a total of $18 million in losses as a result of Securities America’s failure to supervise.

Moreover, according to May’s former client, he stole millions from his family and repeatedly provided investment advice designed to make it easier for him to continue the theft.  May’s former client stated in his complaint that the only reason May was able to perpetrate a fraud was the abject failure of Securities America to perform its duties.

Furthermore, according to the complaint, Securities America should have known that May and his daughter, Vania Bell lied to investors by fraudulently promising to invest their money in bonds, when instead they used investor funds to pay for personal and business expenses, as well as extravagant items, such as jewelry, furs, and vacations.

According to his BrokerCheck, May was terminated by Securities America last year after the complaint was filed by his former client.

The attorneys of Eccleston Law LLC represent investors and advisors nationwide in securities and employment matters. The securities lawyers at Eccleston Law also practice a variety of other areas of practice for financial investors and advisors including Securities FraudCompliance ProtectionBreach of Fiduciary DutyFINRA Matters, and much more. Our attorneys draw on a combined experience of nearly 65 years in delivering the highest quality legal services. If you are in need of legal services, contact us to schedule a one-on-one consultation today. 

Related Attorneys: James J. Eccleston

Tags: james eccleston, eccleston law, eccleston law llc, eccleston, ponzi scheme, securities america, brokercheck, hector may

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