Former Registered Rep Barred for Defrauding Elderly Client

Posted on April 9th, 2015 at 9:41 AM
Former Registered Rep Barred for Defrauding Elderly Client

From the Desk of Jim Eccleston at Eccleston Law LLC:

Ronald Paul Rafaloff, a former broker from Liberty Partners Financial Specialist, LLC, has been barred by FINRA and ordered by the New Jersey Bureau of Securities to pay $200,000 in civil penalties for defrauding his elderly client.

Rafaloff used $405,000 invested by the client (his sole client in fact) to fund companies that he founded and controlled. To orchestrate his fraud and to earn the trust of his client, Rafaloff befriended the client– offering to run errands for her, taking her to dinner and accompanying her to medical appointments – and promised her “capital appreciation” of 30% to 40% with personal guarantees on the securities.

The Bureau’s investigation found that Rafaloff committed multiple violations of the state’s Uniform Securities Law, including filing a false application with the Bureau by not disclosing his business interests, making untrue statements or omitting material facts to the victim, and engaging in dishonest or unethical business practices.

The attorneys of Eccleston Law LLC represent investors and advisers nationwide in securities and employment matters. Our attorneys draw on a combined experience of nearly 65 years in delivering the highest quality legal services.

Related Attorneys: James J. Eccleston

Tags: Ronald Paul Rafaloof, FINRA, SEC, James Eccleston

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