Back in April, we reported that we were investigating misconduct allegations facing Larry Dearman, a former financial advisor from Oklahoma. Larry Joe Dearman Sr. (CRD# 4502863) was accused of raising $4.7 million from investors through illegal schemes. This week, the SEC filed an order barring Dearman from the securities industry.
The SEC had accused Dearman of raising millions of dollars from investors through illegal schemes during the period between December 2008 and August 2012 while he was registered as a representative with Securities America, Inc. and later Cambridge Legacy Securities LLC. The SEC’s complaint said that Dearman transferred his customers’ money into businesses owned by one of his friends. Some of those businesses included:
- Bartnet Wireless Internet, Inc.
- The Property Shoppe, Inc.
- Quench Buds Holding Company, LLC
In a criminal case arising out of many of the same allegations made by the SEC’s civil complaint, Dearman was charged with 10 counts of embezzlement, obtaining money by false pretenses, and other related fraud-related acts. He eventually pleaded guilty and was sentenced to 10 years in prison.
According to the SEC, Dearman will never associate with any “broker, dealer, investment adviser, municipal securities dealer, municipal advisor, transfer agent, or nationally recognized statistical rating organization” again.