The SEC Secures Final Judgement Against Lee D. Weiss

Posted on July 15th, 2016 at 3:35 PM
The SEC Secures Final Judgement Against Lee D. Weiss

From the Desk of Jim Eccleston at Eccleston Law LLC:

The Securities and Exchange Commission has announced that a final judgment has been entered against investment adviser Lee D. Weiss and his firm, Family Endowment Partners (FEP), along with relief defendants MIP Global Inc., Mosaic Enterprises Inc., Mosaic Investment Partners Inc., and Weiss Capital Real Estate Group, LLC.

 The complaint filed by the SEC claims that Weiss and FEP perpetrated a number of fraudulent schemes, engaged in self-dealing, failed to disclose material facts, misappropriated investor funds, and made risky investment recommendations. The complaint pointed to FEP and Weiss’ urging of clients to invest more than $40 million in illiquid securities without disclosing Weiss’ ownership interest and payment receipts. Furthermore, it is alleged that Weiss and FEP recommended that their clients invest in a consumer loan portfolio while failing to disclose that Weiss would receive cash payouts equal to half of the profits made from the investments.

The judgment permanently enjoins Weiss and FEP in violating the antifraud provisions of federal securities laws. As stipulated by the judgement orders, Weiss and FEP must pay a civil penalty of $1,000,000 and $500,000, respectively. Additionally, Weiss FEP and the relief defendants are ordered to pay disgorgement totaling $8,436,766 plus interest. The parties agreed to the judgment without admitting or denying the allegations.

Furthermore, the SEC permanently has barred Weiss from association with any broker, dealer, investment adviser, municipal securities dealer, municipal advisor, transfer agent, or nationally recognized statistical rating organization. Weiss consented to the order without admitting or denying the findings. 

The attorneys of Eccleston Law LLC represent investors and advisers nationwide in securities and employment matters. 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: Eccleston, Eccleston Law, Eccleston Law LLC, James Eccleston

Return to Archive

TESTIMONIALS

Previous
Next

You are the best attorneys in the country.

CC

LATEST NEWS AND ARTICLES

April 22, 2024
FINRA Fines Independent Broker-Dealers Over Cybersecurity Lapses

The Financial Industry Regulatory Authority (FINRA) has imposed fines and censured independent broker-dealers Osaic Wealth and Securities America for cybersecurity deficiencies that led to hackers accessing the private information of more than 32,000 customers.

April 19, 2024
WealthFeed Raises Funds for AI-Driven Lead Generation Tool

WealthFeed leverages proprietary AI technology to collect nine real-time financial data points, including business sales, capital raises, inheritances, and job changes.

April 18, 2024
SEC Fines Target Off-Channel Communications

The Securities and Exchange Commission (SEC) is ramping up its enforcement efforts targeting off-channel communications, particularly text messages, among investment advisory firms.