The investment fraud Meyer Wilson has been contacted recently by customers
who purchased investments sold by former Pennsylvania stockbroker
Patricia S. Miller. An investigation conducted by Meyer Wilson's attorneys has uncovered
evidence suggesting that Ms. Miller may have been operating a massive
Ponzi scheme involving potentially dozens of investors and millions of dollars.
Ponzi scheme is an investment fraud that involves the payment of purported returns
to existing investors from funds contributed by new investors. In many
Ponzi schemes, the fraudsters focus on attracting new money to make promised
payments to earlier-stage investors to create the false appearance that
investors are profiting from a legitimate business.
Documents provided to Meyer Wilson show that Miller may have sold investments
through various potential sham entities, including KS Investments, KS
Investment Partnership, K Squared Development, K Squared Investments,
Buck Harbor Investments, Buck Harbor Investment Club, and Buck Harbor
Through these entities, investors may have been led to believe that they
owned bonds issued by companies like The Hershey Company, General Electric,
McDonald's Corporation, and Ford Motor Company, as well as municipal bonds.
It is unclear at this point, however, if any securities were actually purchased
by Miller on behalf of customers. It may be the case that Miller was improperly
pooling investors' funds through these entities in violation of federal
and state securities laws, or that she otherwise misappropriated the funds
deposited by investors.
Several documents provided to the Meyer Wilson were apparently passed off
to customers as "account statements" but do not contain much of the required information that is mandated
"This raises serious doubt about the legitimacy of what Miller sold
to customers," says attorney David P. Meyer, managing partner of
Another cause for concern, says Mr. Meyer, is the abruptness of Miller's
recent departure from the brokerage firm of Investors Capital Corporation,
her former employer.
"Customers were recently contacted by Investors Capital and told that
Pat Miller was no longer with the firm. This announcement was made only
a few days after Investors Capital received a customer complaint about
Miller, and we know that Investors Capital is now asking customers to
contact them with any information about their investments in KS Investments,
K Squared, and Buck Harbor. In my experience, a brokerage firm is not
going to take these steps unless it is concerned about potential serious
liability," says Mr. Meyer.
Prior to working for Investors Capital, Miller was employed by the brokerage
firm of Janney Montgomery Scott, LLC. Mr. Meyer says that documents reviewed
as part of his law firm's investigation suggest that Miller's
misconduct might have begun while she worked at Janney Montgomery and
continued after she joined Investors Capital," says Mr. Meyer.
"Under those circumstances, if it can be shown that Janney Montgomery
or Investors Capital failed to take reasonable steps to properly supervise
Pat Miller's activities and what was going on in customers' accounts,
then the brokerage firms may be held liable for all or part of the investors'
losses in the Ponzi scheme. Simply put, brokerage firms cannot turn a
blind eye while their brokers sell sham investments. They have an affirmative
duty to operate a robust supervisory system that protects investors from
this sort of misconduct," says Mr. Meyer.
Customers with questions or concerns about their investments with former
stockbroker Pat Miller are encouraged to contact the investment fraud
lawyers at Meyer Wilson at 888-390-6491 for a complimentary case evaluation
and for additional details about their ongoing investigation.