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 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

1776353258 Law
April 16, 2026
Former Financial Advisor Pleads Guilty to $10 Million Fraud Scheme Targeting Elderly Client

A former financial advisor has pleaded guilty to wire fraud after orchestrating a scheme that stole nearly $10 million from an elderly client, according to reporting by Financial Advisor News.

1776286541 Law
April 15, 2026
Court Issues Split Ruling in Edelman Advisor Dispute

A federal court in Delaware has delivered a mixed decision in a dispute between Edelman Financial Engines and Prime Capital Financial, underscoring the legal limits of restrictive covenants in the advisory space.

1776182162 Law
April 14, 2026
FINRA Seeks Public Comment on Potential Overhaul of Arbitration Rules

The Financial Industry Regulatory Authority (FINRA) has issued Regulatory Notice 26-06, requesting public comments on proposed changes to its arbitration framework.