The U.S. Securities and Exchange Commission’s Enforcement Division has filed fraud charges against William Quigley, the former compliance director of Trident Partners Ltd. According to the regulator, Quigley solicited investors to purchase stock in start-ups that were supposedly about to go public, as well as well-known companies, but never actually bought the investments. Instead, he put their money in brokerage and bank accounts in the Philippines or used ATM machines to take out the funds.
Quigley is accused of working with two brothers in the Philippines. He and his co-conspirators allegedly transferred over $500,000 of investor funds to the accounts in that country.
The SEC claims that Quigley set up three brokerage accounts, including a secret account at Trident Partners, to conduct the scam. As compliance director, he was supposed to open and correctly route incoming correspondence and wires and report suspect transfers. Instead, he stole commission checks written to the brokerage firm and put the money in outside accounts.
The Enforcement Division is charging Quigley with federal securities laws antifraud provisions violations, as well as causing, aiding, and abetting violations of these provisions. He also is charged with aiding, abetting, and causing Trident’s violations of federal securities laws, which require firms to report transactions involving illicit activities.
Meantime, the U.S. Attorney’s Office for the Eastern District of New York has filed a parallel action against Quigley. In a two-count indictment, he was charged with conspiracy to commit wire fraud and money laundering. A release issued by the attorney’s office said that instead of using his training to protect overseas investors who were told that their money would go into reputable funds and companies, Quigley and others stole the money for personal use.
Quigley and the co-conspirators are accused of misrepresenting themselves and pretending to be registered broker-dealers.
Our stockbroker fraud law firm helps investors recoup their losses in arbitration and in court.
SEC Announces Charges Against Compliance Director Accused of Defrauding Investors and Stealing Brokerage Firm Assets, SEC, May 28, 2015
SEC Order (PDF)