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.

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Tags: Jim Eccleston, Eccleston Law, Eccleston Law LLC, Eccleston, Ponzi Scheme, Federal

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