If you have lost money investing in CDs sold to you by Malcolm Segal through National CD Sales or J&M Financial, CALL 860-920-5181 for a FREE Consultation regarding your investment loss recovery options. Kons Law is offering a contingency fee representation to Malcolm Segal victims, meaning that if there is no recovery there are no attorneys’ fee or expenses owed by the client.
Malcolm Segal Charged by SEC for Selling Fraudulent CDs
The Securities and Exchange Commission (SEC) recently charged former Langhorne, Pennsylvania stockbroker Malcolm Segal with conducting a $15.5 million Ponzi scheme and stealing investor money to support his lifestyle. Upon information and belief, there are at least 50 victims of this Ponzi scheme.
According to the SEC, Malcolm Segal fraudulently sold so-called certificates of deposits (CDs) to his brokerage customers by falsely claiming that he could get them higher interest rates of return on FDIC-insured CDs than otherwise available to the general public. In some instances, Malcolm Segal purchased CDs on behalf of investors but secretly redeemed them early and took the proceeds. Other times, Malcolm Segal did not purchase CDs at all despite telling customers he had purchased CDs for them. According to the SEC, Malcolm Segal raised approximately $15.5 million from at least 50 investors. Besides spending investor money on himself, the SEC alleges that Malcolm Segal used it in Ponzi scheme fashion for purported interest payments and principal repayments to earlier investors. In addition, the SEC alleged that Malcolm Segal eventually started stealing directly from his customers’ brokerage accounts in a last-ditch effort to keep funding the Ponzi payments. In a parallel action, the U.S. Attorney’s Office for the Eastern District of Pennsylvania today announced criminal charges against Malcolm Segal.
According to Malcolm Segal’s regulatory history, in July 2014, his former brokerage firm Aegis Capital Corp terminated him for similar allegations. The Financial Industry Regulatory Authority (FINRA) also recently barred him for failing to cooperate in its investigation of his misconduct. as he allegedly engaged in unauthorized transfers of funds.terminated Malcom Segal for similar allegations.
Malcolm Segal Victims May Have Ponzi Scheme Investment Loss Recovery Options through FINRA Arbitration
Fortunately for investors,those that were sold fraudulent CDs by Malcolm Segal through National CD Sales or J&M Financial may be able to recover those investment losses through FINRA arbitration or securities litigation.
Under FINRA rules, for a brokerage firm like Aegis Capital Corporation to properly supervise their a stockbroker like Malcolm Segal, each firm is required to establish and maintain a system where each registered representative is in compliance with the securities law. In cases where a stockbroker like Malcolm Segal sells fraudulent or unregistered securities to firm customers (such as the fraudulent CDs sold through National CD Sales or J&M Financial, the brokerage firm itself may be held jointly and severally liable for the losses the investors suffer. As a result, investors who lost money with stockbroker Malcolm Segal may be able to recover their investment losses through FINRA arbitration.
Malcolm Segal Investment Loss Recovery through FINRA Arbitration or Securities Lawsuit
If you have suffered investment losses investing with Malcolm Segal, J&M Financial and/or National CD Sales, or to simply learn more about the FINRA arbitration process, please contact Kons Law Offices at (312) 757-2272 for a FREE, NO OBLIGATION consultation to discuss your legal rights.
Kons Law Offices represents investors nationwide in securities arbitration and litigation matters. To learn more about the Firm’s securities litigation and FINRA arbitration practice, please visit www.investmentlossattorney.com.