Former Florida Broker Sentenced to 6½ Years in Prison for $16 Million Fraud Scheme

Posted on December 14th, 2018 at 2:33 PM
Former Florida Broker Sentenced to 6½ Years in Prison for $16 Million Fraud Scheme

From the Desk of Jim Eccleston at Eccleston Law LLC:

A federal judge in Florida has sentenced former Fort Lauderdale, Florida broker Salvatore Colonna to 6½ years in prison and ordered him to pay $13.1 million in restitution for his role in a $16 million precious metals and securities fraud scheme.  

According to the indictment, from 2010 until 2013, Colonna played a major role in a plot carried out by Liberty International Financial Services in soliciting investors for funds by means of materially false and fraudulent premises. Colonna was employed as a broker for Barclays Capital during the same timeframe as the fraud.

More specifically, Colonna told his investors that their investment capital would be used to buy interests in gold, silver, and palladium. In addition, Colonna promised his investors that they would substantial dividends and assured them that he would take only 5 percent to 15 percent of commission from their investments.

However, in reality, Liberty International Financial Services was not using investor money to buy precious metals and investors never received substantial dividends. Nevertheless, Colonna knowingly received commissions on the investments as high as 40 percent and he personally received a total of $2.4 million of the investors’ funds over the three years he had worked as a broker.

In addition to Colonna’s sentence, Liberty International Financial Services’ co-founders, Christopher Anzalone, and Jeffrey Schuler were sentenced in 2015 to 15 years and 5 years in prison, respectively, for their roles in the perpetrating the fraud.

Eccleston Law is investigating the fraudulent activities of Salvatore Colonna and other related individuals and entities involved in orchestrating the fraud. Those with information should contact our law firm.

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, liberty international financial services, salvatore colonna, florida, brokerage

Return to Archive

TESTIMONIALS

Previous
Next

If you find yourself in trouble with the regulators, call Eccleston Law, you won't regret it.

Rick R.

LATEST NEWS AND ARTICLES

February 23, 2024
Advisor Accepts Industry Bar Amid FINRA Probe into Outside Business Activities

John A. Dougherty, a veteran advisor with 23 years of experience, agreed to an AWC (Acceptance, Waiver, and Consent) after refusing to cooperate with a regulatory investigation into allegations of undisclosed outside business activities.

February 22, 2024
Key Considerations for Advisors When Assessing the Financial Soundness of Annuities

While rating agencies like Fitch and S&P Global Ratings generally highlight the strength of annuity issuers, advisors still should scrutinize certain factors in their assessment process.

February 21, 2024
SEC Alleges Fraud Against Morgan Stanley and Former Executive in Block Trading Business

As reported by the Wall Street Journal, the Securities and Exchange Commission (SEC) has charged Morgan Stanley & Co. LLC and its former head of equity syndicate desk, Pawan Passi, with a multi-year fraud involving the disclosure of confidential information related to block trades.