Former RIA Charged In Investment Fraud

Posted on July 24th, 2014 at 8:40 AM

From the Desk of Jim Eccleston at Eccleston Law Offices:

John Montague, a former RIA from New Jersey, who was barred by FINRA from the broker-dealer industry in 2011, pleaded guilty to a $900,000 investment fraud.

Montague was licensed to sell mutual funds, variable annuities, and insurance products, but he was not licensed to sell corporate or municipal securities, direct participation programs or options. Montague engaged in defrauding his clients by soliciting and inducing them to purchase investment vehicles that Montague was not authorized to sell. Moreover, Montague promised his clients a rate of return of approximately six percent on those investment vehicles.

 Montague instructed his clients to make their investment checks payable to him. He then deposited the checks into his personal bank accounts. To maintain the clients’ confidence in the investments, Montague issued periodic “dividend” checks to his clients.

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


Return to Archive



Thank you for your professional assistance with this matter. You are very good at what you do.

John T.


October 27, 2021
Former LPL Advisor Suspended For Completing 22 Trades Absent Client Consent

The Financial Industry Regulatory Authority (FINRA) has suspended and fined a former LPL advisor who allegedly completed 22 trades on behalf of a client without obtaining written consent. FINRA has issued a $5,000 fine and has suspended Michael Hartlett for 10 days.

October 26, 2021
Former Advisor Fails To Reverse Bar After Alleged $1 Million Theft From RBC

A former RBC Wealth Management advisor lost his bid to reverse an industry bar, according to an appellate decision issued by the Financial Industry Regulatory Authority (FINRA).

October 25, 2021
Firms Walk Thin Regulatory Line In Referring Self-Directed Clients To Advisors

While online trading platforms have surged in popularity during the pandemic, brokerage firms view self-directed investors as a source of new clients.