Los Angeles Investment Adviser Indicted

Posted on September 5th, 2019 at 5:04 PM
Los Angeles Investment Adviser Indicted

From the Desk of Jim Eccleston at Eccleston Law LLC:

 

A federal grand jury in Los Angeles has indicted investment adviser Motty Mizrahi on wire fraud charges. The SEC previously charged Mizrahi and his sole proprietorship MBIG Company in an emergency action where it obtained a temporary restraining order and subsequently a preliminary injunction against Mizrahi and MBIG, for perpetrating a fraud on their investment advisory clients.

 

According to the indictment, Mizrahi and another individual engaged in a scheme to defraud more than forty investors, as well as Mizrahi's employer, a private high school. Holding himself out as a licensed professional money manager, broker, and Certified Public Accountant, Mizrahi claimed that he employed sophisticated "risk-free" trading strategies with "guaranteed returns"; that investors' principal could be redeemed "on-demand"; and that Mizrahi would be compensated only by sharing 25% of investors' profits. Instead, Mizrahi transferred millions of investor monies to his trading accounts, where he accumulated extensive losses and converted investor monies to his personal use. Further, Mizrahi lulled investors by providing them false account statements that contained illusory gains, fraudulently-altered fictitious brokerage statements purporting to show millions in reserves and falsely assuring them that their funds were safely invested.

 

The criminal case against Mizrahi is based on the same conduct alleged in the SEC's complaint. The SEC charges Mizrahi and MBIG with fraudulently misleading advisory clients through the same misrepresentations regarding his background, trading strategies, compensation that are charged in the indictment, and lulling investors through fictitious brokerage records and false account statements designed to conceal his fraud.

 

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 investors and advisors including Securities FraudCompliance ProtectionBreach of Fiduciary DutyFINRA Matters, 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: james eccleston, eccleston law, eccleston law llc, eccleston, wire fraud, falsification of records, sec, indictment, money manager

Return to Archive

TESTIMONIALS

Previous
Next

I have the best legal firm in the country to defend me. Awesome job!

Cindy C.

LATEST NEWS AND ARTICLES

June 23, 2022
Former Credit Suisse Advisor Prevails in Deferred Compensation Claim

A former Credit Suisse advisor has prevailed on a $2.2 million arbitration claim after alleging that the firm improperly withheld his deferred compensation when it discontinued its U.S. brokerage business in 2015. 

 
 
June 23, 2022
Eccleston Law LLC Investigates Recovery Options for NRIA Investors

Headquartered in Secaucus, NJ, National Realty Investment Advisors (NRIA) recently declared bankruptcy amid investor redemption requests, federal and state investigations, and unsustainable debt.

 
 
June 22, 2022
SEC Charges Three Additional Advisors for Recommending Horizon Ponzi Scheme to Investors

The Securities and Exchange Commission (SEC) has filed suit against Michael Mooney, Britt Wright, and Penny Flippen pertaining to their engagement with a Ponzi scheme, which raised at least $110 million from nearly 400 investors.