On October 19, 2015, the Securities and Exchange Commission (SEC) announced
that former president of Coastal Investment Advisors Inc., Michael Donnelly,
and its affiliated broker-dealer, agreed to settle charges that he allegedly
stole close to $2 million from his former clients.
The settlement stems from a complaint filed by the SEC earlier this year
alleging that Donnelly had taken funds from his unsophisticated and elderly
clients and used the funds for his own personal expenses, including car
payments, rent, tuition for his children’s private school, and membership
fees to a private golf club.
In connection with the alleged scheme, Donnelly was accused of sending
his investors fake information including false account statements and
trade confirmations. He was also alleged to have misled investors about
the performance of their purported investments
By settling the case, Donnelly admitted to defrauding clients and agreed
to disgorge $1.9 million and a prejudgment interest amount of $365,723.
He also agreed to be barred permanently from any connection with the securities industry.
In a separate, but parallel action, Donnelly is also facing criminal charges
recently announced by the U.S. Attorney’s Office for the Eastern
District of Pennsylvania.
The securities fraud lawyers at Meyer Wilson are dedicated to protecting
innocent investors when they have been defrauded. If you invested and
lost money with Michael Donnelly, call us today and discuss your case
with us in a