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 learned two important things working with Eccleston Law. First, I made a friend and ally with Jim and Steph for life. Secondly, and this is a crucial life lesson - if you need counsel, then seek out the very best. Jim was referred to me by a most trusted source. I've never had to hire an attorney for anything. Now, I know the value of hiring an important partner. Meticulous, thorough and detailed in preparation is the best way to describe Jim. Brilliant too, I might add. Bottom line, I would highly highly recommend Jim and Stephany for your legal needs. One of the best life decisions I've ever made.

Howard S.

LATEST NEWS AND ARTICLES

1780676353 Law
June 5, 2026
Redemption Pressure Mounts Across Private Credit and Non-Traded BDC Market

Investors continued pulling money from private credit and nontraded business development companies ("BDCs") during the first quarter of 2026 as concerns about liquidity and portfolio valuations intensified across the sector, according to reporting by InvestmentNews.

1780588152 Law
June 4, 2026
Former Wells Advisor Alleges Age Discrimination

A former Wells Fargo senior private client financial advisor in Wisconsin has filed a federal lawsuit alleging the firm terminated him because of his age rather than an alleged workplace profanity incident.

1780507151 Law
June 3, 2026
Starwood REIT Suspends Most Redemptions Amid Liquidity Pressure

Starwood Real Estate Income Trust (SREIT) has announced a temporary suspension of its share repurchase program for most investors.