Former broker Jason A. Muskey has been issued an SEC Order instituting administrative proceedings stemming from allegations of misconduct in violations of Section 15(b) of the Securities Exchange Act of 1934 and Section 203(f) of the Investment Advisers Act of 1940.
According to Muskey’s regulatory report, he was a broker at Ameritas Investment Corp. from 2006 to June 2014, at which time he was discharged amidst allegations of theft and forgery. He was also owner and operator of an unregistered investment advisory entity, Muskey Financial Services. Muskey was accused by the SEC of conducting a Ponzi-like scheme from January 2007 through May 2014 that resulted in 26 brokerage customers being defrauded of roughly $2 million.
The SEC alleged that Muskey knowingly and willingly devised a fraudulent scheme in order to obtain funds from clients based on false pretenses and promises. These funds were allegedly misappropriated and converted for Muskey’s personal use or in order to repay other defrauded clients. It is also claimed that Muskey forged the signatures of his clients to obtain checks and deposit them into bank accounts of which he had control and then provided false account statements.
Criminal charges also came down in February 2015, and Muskey pled guilty to one count of mail fraud, one count of money laundering, and one count of aggravated identity theft on February 17, 2015. As for the SEC Order, Muskey has submitted an Offer of Settlement, which the Commission has determined to accept. The Offer of Settlement includes the following sanctions:
- Muskey is barred from any association with brokers, investment advisers, municipal advisers, dealers, municipal securities dealers, transfer agents, or nationally recognized statistical rating organizations.
- Muskey is barred from participating in any capacity with regards to offering penny stocks. This includes barring from acting as a consultant, finder, agent, promoter, or any other position engaging in any activities involving dealers, brokers, or issuers for the issuance or trading of penny stocks, or the attempt to induce or inducing the purchase or sale of penny stocks.
Our securities fraud lawyers at Meyer Wilson are committed to helping investors recover losses if they invested and lost money with former broker Jason A. Muskey of Ameritas Investment Corp. / Muskey Financial Services. If you invested with Jason A. Muskey and lost money, we encourage you to speak with us in a free case review. We can discuss your legal options and determine if you have a case. Call today.