The U.S. Securities and Exchange Commission has taken action to bar Paul Marshall, an ex-investment adviser and broker from the industry. Marshall is accused of misappropriating $2M in client assets.
Last year, the SEC charged him and his related investment advisers, Bridge Securities and Bridge Equity Inc., with fraud. The regulator contends that Marshall took client assets to cover his own spending, including child support, alimony, expensive vacations, and tuition for his kids. He purportedly diverted the money into accounts under his control, set up misleading account statements, and raised cash for FOGFuels Inc., a private placement he controlled.
The Financial Industry Regulatory Authority Inc. has already barred Marshall from associating with all brokerage member firms. Last month, the SEC ordered him to pay $15 million in disgorgement because of the money he made from the alleged securities scam.
Marshall has to pay $1.35 million in penalties. The two investment advisers must pay $5.8 million. FOGFuels’s penalty is $725,000.
Marshall previously worked for eight brokerage firms. In 2008, he was let go from Oppenheimer & Co. (OPY) after a customer accused him of taking a loan from that client and taking part in private securities transactions.
Please reach out to our stockbroker fraud lawyers if you suspect that you were the victim of financial fraud. We represent investors with securities claims and financial fraud lawsuits and help them recover their investments losses.
Read the Administrative Proceeding Against Paul Marshall (PDF)
SEC: Cobb adviser used clients’ funds for trips, alimony, AJC.com, September 16, 2013
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