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

I am so blessed to have you and your dynamic team defending me. Your ethics, forward thinking and strategies are amazing.  You guys are the best group of attorneys in the country that I could hire to handle this complicated case.

Cindy C.

LATEST NEWS AND ARTICLES

February 22, 2024
Key Considerations for Advisors When Assessing the Financial Soundness of Annuities

While rating agencies like Fitch and S&P Global Ratings generally highlight the strength of annuity issuers, advisors still should scrutinize certain factors in their assessment process.

February 21, 2024
SEC Alleges Fraud Against Morgan Stanley and Former Executive in Block Trading Business

As reported by the Wall Street Journal, the Securities and Exchange Commission (SEC) has charged Morgan Stanley & Co. LLC and its former head of equity syndicate desk, Pawan Passi, with a multi-year fraud involving the disclosure of confidential information related to block trades.

February 20, 2024
Challenges Persist: Firms Struggle to Comply with Regulation Best Interest

FINRA's annual report for 2024 reveals a concerning trend among broker-dealers, with numerous instances of violations of Regulation Best Interest (Reg BI).