Tr?id=566623520170033&ev=PageView&noscript=1

New Jersey Advisor Faces Charges for Alleged $89 Million Investor Fraud Scheme

Posted on February 15th, 2024 at 2:42 PM
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.

Tags: eccleston, eccleston law

Return to Archive

TESTIMONIALS

Previous
Next
Quotes Bigger

I just wanted to say thanks again for preparing and executing my case in such a professional manner. It was a pleasure to watch two professionals take such pride in their work, as well as becoming personally in tune with your client (Me). I would personally recommend you and your firm to anyone.

John O.

LATEST NEWS AND ARTICLES

1777047237 Law
April 24, 2026
Geopolitical Tensions Prompt Wealth Advisors to Rethink Dubai Strategies

Recent geopolitical developments have forced wealth advisors to reassess client exposure to Dubai, a jurisdiction that has attracted significant ultra-high-net-worth capital over the past decade.

1776963542 Law
April 23, 2026
Advisor Recruiting Surges in 2025 as Industry Movement Reaches New Highs

Advisor movement across the wealth management industry accelerated sharply in 2025, with 11,172 experienced financial advisors changing firms, according to reporting by Wealth Management citing the latest Advisor Transition Report from Diamond Consultants.

1776796402 Law
April 21, 2026
DOL Proposal on Alternative Assets in 401(k)s Faces Cautious Reception

The U.S.