National investment fraud lawyers KlaymanToskes reports that barred stockbroker Paul Richard McGonigle (CRD# 1220690) pleaded guilty to fraud, money laundering, wire fraud, and other charges, in connection with findings that he defrauded $1.4 million from his elderly and otherwise vulnerable clients, and stole their retirement assets. SII
The news comes after Paul Richard McGonigle was permanently barred from acting as a broker or associating with a broker-dealer firm by the Financial Industry Regulatory Authority (“FINRA”) for refusing to produce investigation-related information regarding his alleged violations of securities laws.
According to FINRA BrokerCheck, Paul Richard McGonigle was previously registered with LPL Financial from 2018 to 2019 in New Bedford, MA and with SII Investments from 1998 to 2018 in New Bedford, MA. According to the indictment, McGonigle often falsely claimed that he was licensed to sell annuities for several different firms, including Fidelity Investments.
Investors that suffered losses with Paul Richard McGonigle at LPL Financial or SII Investments are encouraged to contact attorney Lawrence L. Klayman, Esq. for a free consultation at (888) 997-9956 or lklayman@klaymantoskes.com to discuss recovery options. We do not collect attorneys’ fees unless we obtain a financial recovery for you.
According to a press release issued by the United States Attorney’s Office for the District of Massachusetts, Paul Richard McGonigle of Middleboro, Massachusetts pleaded guilty to one count of investment adviser fraud, two counts of money laundering, three counts of wire fraud, one count of mail fraud and one count of aggravated identity theft. The charges arose from an investigation of McGonigle by the Department of Justice and prosecutors in the FBI’s Boston division.
The indictment alleged that from 2015 to 2021, McGonigle defrauded his advisory clients of $1.4 million by engaging in unauthorized withdrawals from their annuities without their consent. He also allegedly solicited customers to give him money under the guise of investing the funds on their behalf, which he instead used to pay his personal and business expenses. Many of McGonigle’s customers were elderly, including one of whom had dementia, and another who suffered a traumatic brain injury.
In addition, McGonigle allegedly forged his victims’ signatures on forms requesting withdrawals from their annuities and impersonated the clients on calls with their annuity companies. In order to continue defrauding his customers, McGonigle falsely claimed that he had been licensed to sell annuities for several different firms, including his misrepresentation that he was able to transfer annuity funds from LPL Financial to Fidelity.
McGonigle was initially charged in June 2021 and later charged in a superseding indictment in February 2022. The former LPL Financial broker is scheduled for sentencing on June 22, 2023. According to the Department of Justice (“DOJ”) the charge of investment adviser fraud provides for a sentence of up to five years in prison, three years of supervised release and a fine of up to $250,000 or twice the gross gain or loss from the offense, whichever is greater.
Prosecutors allege that McGonigle also committed another felony in addition to the eight counts of charges he is currently facing. It is alleged that McGonigle ran a separate scheme involving a hotel development project in Florida with another individual. His co-defendant was disqualified as a director of a British company and has been sued by the United Kingdom’s Financial Conduct Authority for running property investment schemes. McGonigle allegedly lied to federal agents and the SEC about his role in the scheme.
KlaymanToskes is dedicated to the protection of the rights of elderly investors and their families. KlaymanToskes’ representation of elderly and retired investors has included claims for violations of securities industry rules and regulations including unsuitable investment advice, negligence, breach of fiduciary duty and financial institutions’ failure to supervise their brokers and financial advisors.
If you or a loved one have experienced elder exploitation, abuse, or fraud, contact attorney Lawrence L. Klayman, Esq. at 888-997-9956 or by email at lklayman@klaymantoskes.com to discuss recovery options. All consultations are free and confidential. We do not collect attorney’s fees unless we are able to obtain a financial recovery for you.
KlaymanToskes is a leading national securities law firm which practices exclusively in the field of securities arbitration on behalf of retail and institutional investors throughout the world in large and complex securities matters. The firm has recovered over $250 million in FINRA arbitrations and over $350 million in other securities litigation matters. KlaymanToskes has office locations in California, Florida, New York, and Puerto Rico.
Lawrence L. Klayman, Esq.
888-997-9956