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Brokerage Firm Chief Compliance Officer Charged With Fraud and Money Laundering

According to the Securities and Exchange Commission (SEC), William Quigley, a former chief compliance officer at New York-based Trident Partners Ltd., was charged with fraud and money laundering for diverting money from overseas investors to family members in the Philippines. William Michael Quigley, of Seaford New York, faces both criminal and civil charges.

The SEC claims that Mr. Quigley convinced foreign investors to invest in well-known U.S companies and start-ups which were on the brink of going public. Instead of investing the customers’ funds, however, Mr. Quigley diverted the funds for his and his brother’s personal use. This scheme was allegedly perpetrated by sending investors fake account statements using a fictitious firm name for more than 10 years.

The SEC further alleged that Mr. Quigley even stole money from his own firm, Trident Partners Ltd., subverting his position of trust as Compliance Director. According to the SEC, Mr. Quigley’s firm members were not aware of his fraudulent activity, but once they became aware, his employment was terminated. The firm then alerted the regulatory authorities of Mr. Quigley’s fraudulent activity.

The SEC has alleged in its complaint that Mr. Quigley violated Section 10(b) of the Exchange Act and Rules 10(b)-5(a) and (c), which prohibits fraudulent conduct in connection with the purchase or sale of securities. Mr. Quigley also engaged in transactions, practices, or a course of business which operated as a fraud or deceit in violation of sections 17(a),(1) and (3) of the Securities Act. Finally, the SEC alleged that Mr. Quigley wrongfully obtained money and property by means of providing the investors with false and misleading statements in violation of section 17(a)(2) of the Securities Act.

Stockbrokers and other financial industry professionals have been known to engage in different types of misconduct which violate industry and firm rules, practices, and procedures. In order to protect customers from stockbroker fraud and misconduct, FINRA rules require brokerage firms to establish and implement a supervisory system. The implementation of these supervisory rules require supervisors to monitor employees to ensure they comply with federal and state securities laws, securities industry rules and regulations, and the brokerage firm’s own policies and procedures. If broker dealers and/or their supervisors do not establish and implement these protective measures, they may be liable to investors for damages with stem from the prohibited misconduct. As a result, investors who have suffered losses because of their stockbroker’s fraudulent or prohibited conduct can file a claim to recover damages against broker dealers like Trident Partners Ltd which should consistently oversee its employees in order to prevent stockbroker misconduct and investment fraud.

Have you suffered losses in your Trident Partners investment account due to your stockbroker’s prohibited conduct? If so, call Robert Pearce at the Law Offices of Robert Wayne Pearce, P.A. for a free consultation. Mr. Pearce is accepting clients with valid claims against stockbrokers for fraudulent investment recommendations and/or other prohibited and illegal conduct.

The most important of investors’ rights is the right to be informed! This Investors’ Rights blog post is by the Law Offices of Robert Wayne Pearce, P.A., located in Boca Raton, Florida. For over 33 years, Attorney Pearce has tried, arbitrated, and mediated hundreds of disputes involving complex securities, commodities, and investment law issues. The lawyers at our law firm are devoted to protecting investors’ rights throughout the United States and internationally! Please post a comment, call (800) 732-2889, send Mr. Pearce an email at pearce@rwpearce.com, and/or visit our website at www.secatty.com for answers to any of your questions about this blog post and/or any related matter.