Former broker Patricia Miller, who was arrested on charges related to a
Ponzi scheme, has been
issued an SEC Order instituting administrative proceedings in pursuant to Section 203(f) of the Investment Advisers Act of 1940 and
Section 15(b) of the Securities Exchange Act of 1934. Miller has submitted
an Offer of Settlement and the SEC has accepted the sanctions imposed.
The sanctions include the following:
- Pursuant to Section 203(f) of the Advisers Act and Section 15(b)(6), Miller
is barred from associating in any capacity with brokers, investment advisers,
dealers, municipal securities dealers, transfer agents, municipal advisor,
or any nationally recognized statistical rating organization.
- Pursuant to Section 15(b)(6) of the Exchange Act, Miller is prohibited
from offering penny stocks in any capacity such as a finder, agent, consultant,
promoter, or other person who may engage with a broker, issuer, or dealer
in order to issue or trade penny stocks, or inducing or attempting to
induce penny stock transactions.
In December of 2014, Miller pled guilty to five counts of wire fraud connected
to the alleged Ponzi scheme she operated from July 2010 until May 2014
while serving as a registered representative with Investors Capital Corp.
Prior to this time, she was affiliated with Janney Montgomery Scott from
1996 through 2010.
On May 19, 2014, one of Miller’s clients made allegations against
Miller, reporting to Investors Capital that the broker had misappropriated
funds from the client’s account. Our securities fraud attorneys
teamed up with Rosen, Louik & Perry, P.C., a Pittsburgh-based firm,
to help victims of this alleged Ponzi scheme recover their losses. It
was discovered in documents provided to our firm that Miller allegedly
used multiple entities in order to defraud her clients, including KS Investments,
K Squared Development, KS Investment Partnership, K Squared Investments,
Buck Harbor Investment Club, Buck Harbor Investment Partnership, and Buck
In our blog on May 29, 2014, we discussed how the Ponzi scheme may have affected dozens of investors
and resulted in millions of dollars in losses. To learn more about the
case, you can
read all of our information on Patricia Miller here.
Miller is currently incarcerated in an Alderson, West Virginia federal
prison where she is serving a 72-month prison sentence. She will then
have three years of supervised release. The sentence also imposed a forfeiture
of the $2.5 million which was obtained as a result of the fraud.
If you have been defrauded by Patricia Miller and have yet to file a claim,
contact our team at Meyer Wilson to schedule your
free case evaluation today.