Eight claimants were
awarded $1.28 million in compensatory damages by a FINRA arbitration panel last Wednesday, which
FSC Securities Corp. is on the hook to pay. According to the claimants, a man named Aubrey
Lee Price along with two other FSC Securities brokers compelled customers
to invest in fraudulent securities as part of a $40 million Ponzi scheme.
According to the allegations, Price and two other FSC brokers convinced
their clients to invest their money into PFG fund – allegedly the
main vehicle for their Ponzi scheme.
reported on Price back in 2012 when the Securities and Exchange Commission froze his assets. Around the
same time, the SEC reported that Price seemed to have gone missing. Price
allegedly faked his own suicide and continued his life as a marijuana
cultivator and part-time bodyguard. Authorities in Georgia found him the
next year during a traffic stop.
FSC, a broker-dealer with the AIG Advisor Group, asserts that Price left
FSC before participating in the fraudulent activity, adding that the brokerage
firm had no knowledge of Price’s dealings after his employment with
FSC had terminated. Conversely, the claimants asserted that FSC should
have seen the multiple warning signs that indicated what Price and the
two other brokers were involved in.
Price was sentenced to 30 years’ imprisonment last year after being
convicted of bank fraud.