Pennsylvania Investment Advisor Pleads Guilty in $4.5 Million Fraud Scheme

Posted on November 13th, 2018 at 4:54 PM
Pennsylvania Investment Advisor Pleads Guilty in $4.5 Million Fraud Scheme

From the Desk of Jim Eccleston at Eccleston Law LLC:

Investment advisor Douglas P. Simanski has pleaded guilty in federal court to charges of securities fraud, wire fraud, and filing false income tax returns.

According to federal prosecutors, Simanski, who was employed as an investment advisor at Next Financial Group, Inc. from February 2002 to May 2016, devised and executed a scheme to fraudulently obtain approximately $4.5 million from various investors.

More specifically, Simanski convinced his clients to purchase fabricated tax-free investment contracts and fake CDs by guaranteeing high rates of return and payouts. Simanski then used new investor funds to pay back old investors, in a Ponzi scheme like manner. In addition, he used a portion of the funds to place investments in his personal E*TRADE account and to purchase personal items for home improvement projects.

Sentencing is scheduled for next year. Simanski could serve a maximum total sentence of 49 years in prison, and be required to pay a fine of $6,000,000.

Eccleston Law is investigating the fraudulent activities of Douglas Simanski. Those with information should contact our law firm.

The attorneys of Eccleston Law LLC represent investors and advisors nationwide in securities and employment matters. The securities lawyers at Eccleston Law also practice a variety of other areas of practice for financial investors and advisors including Securities FraudCompliance ProtectionBreach of Fiduciary DutyFINRA Matters, and much more. Our attorneys draw on a combined experience of nearly 65 years in delivering the highest quality legal services. If you are in need of legal services, contact us to schedule a one-on-one consultation today.

Related Attorneys: James J. Eccleston

Tags: james eccleston, eccleston law, eccleston law llc, eccleston, pennsylvania, investment adviser

Return to Archive



Fantastic news!!!!  Your professionalism, support and expertise were greatly appreciated.  You made a difficult situation much more bearable.

Marci M.


August 8, 2022
SEC Files Suit Against Georgia Advisor Over Misappropriation of Client Funds

The Securities and Exchange Commission (SEC) is filing suit against a Georgia-based advisor, Christopher Burns, who allegedly misappropriated client funds.

August 5, 2022
SEC Fines RIA $5.8 Million Over 12b-1 Fee Infractions Tied to Wrap Accounts

The Securities and Exchange Commission (SEC) has imposed a $5.8 million fine against Private Advisor Group over 12b-1 fee violations tied to its wrap fee program. 

August 4, 2022
North Dakota Regulators Seek to Close Down Advisory Firm Selling Crypto and Weed Products

The North Dakota Securities Commissioner’s office is seeking to shut down a small West Fargo-based registered investment adviser (RIA) after its owner allegedly violated state securities laws and improperly took custody of $17.8 million in client funds beginning in 2017.