Former SII Investments Inc. financial advisor reportedly stole $1.8 million
from his investment clients to support his lifestyle and gambling habit.
According to the Complaint filed by the SEC on September 6th, Newsholme concealed the scheme by making various misrepresentations to
his clients, falsely reporting that their investments were doing well.
He allegedly gave them fake account statements, stock certificates, and
forged fake promissory notes purporting to be bonds and other debt instruments.
The misconduct, according to the SEC, started in 2013 while Newsholme
was a registered financial advisor with the brokerage firm, SII Investments, Inc.
In 2014, FINRA barred him from associating with its members for his failure
to respond to its requests for information. Newsholme is also currently
facing criminal charges from the U.S. Attorney’s Office for the
District of New York.
According to the SEC, instead of investing his clients’ money as
promised, Newsholme diverted his clients’ investment funds for his
own use, including cashing their checks and pocketing the money. The SEC
called the victims “unsophisticated investors who trusted [Newsholme],”
many of whom had been working with Newsholme for a long time.
Brokerage firms are required by industry rules to supervise their brokers
and should investigate when these red flags appear. Sadly, some firms
don’t keep track of their brokers, and their clients don’t
know there is a problem until it is too late.
If you or a loved one suspect investment fraud or a broker has stolen money
from you, an experienced attorney can help you recover your losses. The
attorneys at Meyer Wilson are trained in how to recover from the broker
and their firm.
Contact us today to learn what we can do for you.