Former NFP Broker Orchestrated a Ponzi Scheme

Posted on May 13th, 2014 at 9:00 AM

From the Desk of Jim Eccleston at Eccleston Law Offices:

Harry Stokes, a former registered broker employed by NFP Securities, Inc. from Monroe, North Carolina was charged with defrauding dozens of investors, including his family and close friends out of millions of dollars.

Stokes owned an insurance firm, Contemporary Benefits Design, and solicited victims to invest money in a non-existent fund called Blackburg Financial with a promise of a fixed 5.99% return each year and sent statements to investors that their investments were growing. NFP Securities, Inc. purchased Contemporary Benefits Designin 2006. 

Stokes claimed that he planned to pay his clients back out of his personal assets, but did not have the funds to do so. A few days after confessing to the Ponzi scheme, Stokes killed himself.

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

Tags:

Return to Archive

TESTIMONIALS

Previous
Next

If the regulators are after you, and are trying to make a case against you, and you are going to contest their allegations against you, make sure you have the best securities industry defense lawyers, Eccleston Law Firm. My case was spun into a combination of penalties including fines, cash settlements, CE courses and suspension. They were the best I have seen in action. When all was said and done, they had done their magic, my situation was negotiated and settled with a simple "letter of caution" and a case closed without action. It is the most important legal business decision you will ever make, make it Eccleston Law.

Rick R.

LATEST NEWS AND ARTICLES

October 15, 2021
FINRA Bars Former LPL Advisor Who Allegedly Misappropriated Elderly Client’s Funds

The Financial Industry Regulatory Authority (FINRA) has barred a former LPL advisor who allegedly misappropriated a senior client’s funds and subsequently failed to cooperate in FINRA’s investigation.

October 14, 2021
NASAA Targets Unpaid Arbitration Awards With Proposed New Model Rules

The North American Securities Administrators Association (NASAA) has proposed new rules in an attempt to reduce the large number of arbitration awards that go unpaid to investors who prevail as claimants in arbitration proceedings.

October 13, 2021
SEC Freezes Assets and Halts Alleged Fraudulent Scheme By Ron Harrison

The Securities and Exchange Commission (SEC) has obtained an emergency court order freezing the assets of Ron Harrison, who allegedly operated an ongoing fraudulent scheme.