New Jersey Advisor Faces Charges for Alleged $89 Million Investor Fraud Scheme
From the desk of Jim Eccleston at Eccleston Law
Raymond John Pirrello Jr., a barred New Jersey advisor, has been indicted on three counts, including securities fraud conspiracy and wire fraud conspiracy, for allegedly defrauding investors of nearly $89 million.
The indictment accuses Pirrello of deceptive practices, including lying to investors and siphoning hidden fees from equity investments through Late Stage Management LLC. Pirrello, previously barred from the industry in September 2019 due to insider trading, now faces a maximum sentence of 20 years in prison.
The indictment outlines that between March 2016 and March 2023, Pirrello and accomplices concealed fees associated with investments offered by Late Stage Management LLC. Investors were allegedly unaware of a significant undisclosed fee built into the stock prices. From March 2019 to July 2022, approximately $528 million was raised from investors, diverting $88.6 million in undisclosed upfront markups to Pirrello and his co-conspirators.
The Securities and Exchange Commission (SEC) also filed a parallel civil complaint linking to the alleged fraud and seeking permanent injunctive relief, disgorgement of ill-gotten gains, pre-judgment interest, civil penalties, and bars against Pirrello and his co-conspirators.
Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters.
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