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

I cannot thank you enough for your guidance. It's a good feeling knowing someone is fighting for you.

Matt J.

LATEST NEWS AND ARTICLES

December 2, 2025
Crypto's Leverage Shakeout Exposes Structural Risks

The crypto market’s recent downturn erased nearly $20 billion in leveraged positions within hours and half a trillion dollars in market value over a single weekend.

December 1, 2025
UBS Winds Down Funds as First Brands Bankruptcy Ripples Through Global Markets

UBS Group AG has begun liquidating two invoice finance funds with direct exposure to First Brands Group, marking one of the earliest moves by a major financial institution to contain the fallout from the bankrupt auto-parts supplier’s collapse, as reported by Bloomberg Law.

November 26, 2025
Former GWG Chair Charged in Alleged $150 Million Fraud Scheme as Investor Losses Mount

Federal prosecutors have intensified scrutiny of the long-running collapse of GWG Holdings Inc., unveiling criminal charges against Bradley Heppner, the former chair of both GWG and Beneficient.