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

Posted on September 25th, 2017 at 3:39 PM

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

Return to Archive

TESTIMONIALS

Previous
Next

I want to extend a tremendous thank you for your dedication, professionalism, hard work and patient demeanor through this challenging time. It was enjoyable interacting with everyone on your team, this certainly helped while dealing with the situation and working towards resolution.

Dan M.

LATEST NEWS AND ARTICLES

January 24, 2025
Fidelity to Shift Independent Advisor Cash to Lower-Yielding FCash Amount in 2025

Fidelity Investments plans to redirect cash balances in non-retirement brokerage accounts managed by independent financial advisors to its in-house sweep account, FCash, starting in 2025.

January 23, 2025
Barred Advisor Continues Pattern of Settlements at Western International Securities

Chris Kennedy, a barred advisor formerly associated with Western International Securities, has agreed to a $2.1 million settlement with the Securities and Exchange Commission (SEC) over allegations of high-volume trading, or churning, in client accounts.

January 22, 2025
FINRA to Revise Outside Business Activities Rules

The Financial Industry Regulatory Authority (FINRA) is seeking to overhaul its rules on outside business activities (OBA) and private securities transactions.