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The Securities Arbitration Law Firm of KlaymanToskes announced today that it is investigating potential claims on behalf of customers of Martin B. Feibish. Feibish, an independent insurance agent, investment broker, and creator of two investment companies, recently pleaded guilty in federal court in Providence, Rhode Island to defrauding a Florida investor out of approximately $5 million by perpetrating a self-contained Ponzi scheme. Feibish also pleaded guilty to filing a false tax return.
Feibish admitted to the court that between 2001 and February 2011, he induced an investor to invest with him more than $5 million by creating false and fictitious investment schemes. Feibish admitted that he returned only a portion of the funds to the investor and that he falsely and fraudulently represented that the funds were returns on the investor’s investments. Feibish admitted that the funds he provided to the investor were actually the result of a Ponzi scheme he perpetrated with the investor’s own money. Feibish admitted to the court that he induced the victim to invest money with his companies so that he could control the funds and use them for his own benefit.
Feibish also admitted to the court that he filed a false tax return for tax year 2009, claiming income in the negative amount of $94,699. Feibish admitted that he had received income substantially more than the amount he reported.
Appearing before U.S. District Court Judge John J. McConnell, Feibish pleaded guilty to one count of mail fraud and one count of filing a false tax return. He is scheduled to be sentenced on June 29, 2012.
During the time period Feibish purpetrated the alleged ponzi scheme, he was registered with several FINRA broker dealers including MML Investors Services, Inc. and Park Avenue Securities, LLC. Under FINRA Rules and the securities laws, these brokerage firms had a duty to supervise Feibish’s activities. Customers of Feibish who sustained losses as a result of his alleged investment scheme may be able to recover their losses by filing an individual securities arbitration claim against Feibish’s employer(s) during the releveant time period.
If you are a victim of Martin Feibish, please contact the law firm of KlaymanToskes for a free consultation, at 888-997-9956.