Hedge Fund Manager Sentenced for Orchestrating a Ponzi Scheme

Posted on August 7th, 2017 at 9:57 AM
Hedge Fund Manager Sentenced for Orchestrating a Ponzi Scheme

From the Desk of Jim Eccleston at Eccleston Law LLC:

Hedge fund manager, Stephen S. Eubanks, was sentenced in federal court to 30 months in prison, three years of supervised release, and ordered to pay $437,609 in restitution to his victims for allegedly defrauding over 20 investors.

According to the criminal complaint, Mr. Eubanks founded Eubiquity Capital LLC after being terminated as a registered broker by Allstate Financial Services in the wake of customer complaints and other disciplinary issues.

In 2013, Mr. Eubanks solicited investments from several acquaintances, presenting himself as a hedge fund manager affiliated with Goldman Sachs, TD Ameritrade, UBS Bank and Fidelity Investments. Mr. Eubanks defrauded over 20 investors by using a significant portion of the funds from newer investors to pay returns to earlier investors. Moreover, Mr. Eubanks displayed fabricated account statements to his investors to deceive them into believing that their money earned healthy returns.

In all, Mr. Eubanks defrauded approximately $437,000 from his investors.

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 advisors including Broker Litigation & ArbitrationStrategic Consulting ServicesRegulatory  MattersTransition Contract Review, 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: Jim Eccleston, Eccleston Law, Eccleston Law LLC, Eccleston, Ponzi Scheme, Federal

Return to Archive

TESTIMONIALS

Previous
Next

I am grateful to have found an outstanding law firm that specializes in securities matters. My lawyers were extremely knowledgeable, diligent, and are skilled litigators. No stone was left upturned. As a result of their experience and tenacity, the arbitration proceeding was dismissed in my favor.

Michael E.

LATEST NEWS AND ARTICLES

April 19, 2024
WealthFeed Raises Funds for AI-Driven Lead Generation Tool

WealthFeed leverages proprietary AI technology to collect nine real-time financial data points, including business sales, capital raises, inheritances, and job changes.

April 18, 2024
SEC Fines Target Off-Channel Communications

The Securities and Exchange Commission (SEC) is ramping up its enforcement efforts targeting off-channel communications, particularly text messages, among investment advisory firms.

April 17, 2024
B. Riley Financial Again Delays Filing Audited Results

B. Riley Financial Inc. has encountered a setback in filing its audited results within an extended timeframe, adding to existing pressure amid concerns raised by short sellers regarding its association with a former business partner.