Ex-AXA Broker Charged with Running $1.5 Million Ponzi Scheme

Posted on October 14th, 2014 at 10:44 AM

From the Desk of Jim Eccleston at Eccleston Law Offices:

The SEC has charged a former AXA Advisors broker, Dennis Wright, with running a $1.5 million Ponzi scheme. Between 1998 and 2012, Wright, allegedly convinced 28 clients to transfer money from AXA variable annuity accounts to AXA managed accounts of mutual funds with a promise of higher rate of return. However, the funds were deposited into a bank account Wright controlled and used to pay his personal expenses and other clients to whom he owed money. According to the SEC, most of the Ponzi scheme victims are Wright’s childhood friends, members of his community and unsophisticated investors.

Wright was at AXA Advisors, a subsidiary of AXA Equitable Financial Services, from 1983 until 2012. The firm, which has around 5,000 brokers, terminated his employment after it became aware of the alleged fraud. FINRA barred Mr. Wright from the industry in June 2013.

The attorneys of Eccleston Law Offices represent investors and advisers nationwide in securities and employment matters. Our attorneys draw on a combined experience of nearly 50 years in delivering the highest quality legal services.

Related Attorneys: James J. Eccleston

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