Iowa Advisor Charged with Running Ponzi Scheme

Posted on May 4th, 2021 at 9:58 AM
Iowa Advisor Charged with Running Ponzi Scheme

From the Desk of Jim Eccleston at Eccleston Law LLC:

Jeffery Carley, the owner of Carley Financial Group, has been accused of running a  Ponzi scheme with his customers' funds. Carley also owned all or part of two other companies, Prosperity Partners and Main Street Solutions which he operated from Treynor, Iowa.

Carley had been advising customers to move money from their traditional individual retirement accounts to a so-called "self-directed" IRA. The "self-directed" IRAs granted the owner greater control over their investments. Carley directed customers toward investments he had an interest in through the other two companies without disclosing that conflict.

Carley created fraudulent annual statements of earnings to distribute to his customers. Carley used the money invested in Prosperity Partners or Main Street for personal expenses and made minimal interest payments back to his customers' accounts. According to the indictment, the Iowa-based advisor also used funds invested by new customers to pay returns to prior investors. 

Carley has been charged with six counts of wire fraud involving at least five victims in Colorado and Nebraska and a total of at least $109,000.

Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, regulatory and disciplinary matters.

Tags: eccleston, eccleston law, ponzi scheme, guilty

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