New Jersey Adviser Accused of Running a Ponzi Scheme to Fund Gambling Habit

Posted on September 25th, 2017 at 3:39 PM
New Jersey Adviser Accused of Running a Ponzi Scheme to Fund Gambling Habit

From the Desk of Jim Eccleston at Eccleston Law LLC:

The SEC has filed a lawsuit against adviser Scott Newsholme of Farmingdale, New Jersey for allegedly defrauding elderly clients in a $1 million Ponzi-like scheme.

More specifically, since at least 2013, Mr. Newsholme fabricated account statements, modified stock certificates and forged promissory notes as part of a scheme to persuade his clients to invest their assets using his services. Moreover, Mr. Newsholme allegedly lied to his clients and cashed their investment checks at a check-cashing store and pocketed the money to fund his gambling habit. Mr. Newsholme later presented his clients with forged and phony documents and made Ponzi-like payments to clients who sought a return of their funds.

The SEC is seeking civil penalties and disgorgement of ill-gotten gains plus interest under the Securities Act, the Investment Advisers Act and the Securities Exchange Act.

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, New Jersey, adviser, ponzi scheme

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We just wanted to say thanks for your work in helping us get back some of the money we lost. We are not by any means rich, but we have saved some money and we have done so through a tight-fisted approach to most everything we do. So losing a significant chunk of money hurt…especially at a time when everyone else was growing their accounts. We really appreciate the work you did.

Allan and Adele

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