SEC Bars South Carolina Unregistered Investment Adviser Who Pled Guilty to Securities Fraud Charges

Posted on August 23rd, 2018 at 8:48 AM
SEC Bars South Carolina Unregistered Investment Adviser Who Pled Guilty to Securities Fraud Charges

From the Desk of Jim Eccleston at Eccleston Law LLC:

The SEC has barred unregistered investment adviser and founder of Cornerstone Capital, Melvin Wimmer Jr., who pled guilty to one count of securities fraud in U.S. District Court earlier this year.

According to the SEC, between 2010 and 2017, Wimmer knowingly and willfully devised a scheme to defraud and obtain $3.6 million from 25 investors in connection with the purchase and sale of high-risk securities and futures contracts by means of false and fraudulent pretenses.

More specifically, according to the SEC’s complaint, Wimmer sent monthly account statements to his investors which falsely showed consistent gains of 8% to 10%. Additionally, last year, Wimmer sent investors fraudulent financial statements demonstrating that Cornerstone Capital had $3.5 million in assets, but in reality, the company was worth less than $40,000.

Wimmer made payments to old investors by using new investor funds, in a Ponzi-scheme like manner. Moreover, of the $3.6 million invested, Wimmer lost approximately $3 million.

Eccleston Law is investigating the fraudulent activities of Melvin Wimmer Jr. 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, SEC, fraud

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Jim, Stephany and the whole team were a God send.  We felt like we were put into a situation where we had no advocate. Jim’s team came in with a strong, well laid out strategy on how to get our story heard. Where our outside compliance company had no ability to help, our Broker Dealer was impenitent, and the regulators were aggressive pursuing vague rules, Jim came like a barricade against an assault we did not understand. Though you pay member dues to be affiliated with FINRA and a B/D, you have no voice. The only thing that is truly heard in this un-level playing field is a bulldog’s bark like Jim’s. I would encourage anyone to call Jim and his team to find a real ally in the tough and complicated world of securities regulation. They are truly the best.

Greg P.


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