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 grateful to have found an outstanding law firm that specializes in securities matters. My lawyers were extremely knowledgeable, diligent, and are skilled litigators. No stone was left upturned. As a result of their experience and tenacity, the arbitration proceeding was dismissed in my favor.

Michael E.

LATEST NEWS AND ARTICLES

June 27, 2022
SEC Investigates A.G. Morgan Financial Advisors and Others For Selling Unregistered Securities

The Securities and Exchange Commission (SEC) is investigating Vincent Camarda, James McArthur, and A.G. Morgan Financial Advisors.

June 24, 2022
SEC Charges Advisors and Their Firm With Reg BI Violations Over Sales of GWG L Bonds

The Securities and Exchange Commission (SEC) has charged Western International Securities and five of its advisors with violating Regulation Best Interest (Reg BI) when they recommended and sold high-risk debt securities known as L Bonds to retirees and other retail investors.

June 23, 2022
Former Credit Suisse Advisor Prevails in Deferred Compensation Claim

A former Credit Suisse advisor has prevailed on a $2.2 million arbitration claim after alleging that the firm improperly withheld his deferred compensation when it discontinued its U.S. brokerage business in 2015.