Eccleston Law

From the Desk of Jim Eccleston at Eccleston Law LLC: Former Wells Fargo broker, John G. Schmidt of Ohio has been charged with 128 felony counts, including 124 counts of forgery, in connection with perpetrating a $1 million Ponzi scheme. According to prosecutors, Schmidt defrauded a number of customers, many of whom were elderly or had dementia.

From the Desk of Jim Eccleston at Eccleston Law LLC: Investment advisor Douglas P. Simanski has pleaded guilty in federal court to charges of securities fraud, wire fraud, and filing false income tax returns. According to federal prosecutors, Simanski, who was employed as an investment advisor at Next Financial Group, Inc. from February 2002 to May 2016, devised and executed a scheme to fraudulently obtain approximately $4.5 million from various investors.

The SEC’s whistleblower program has been an important tool for individuals since 2011. The awards are distributed from an investor protection fund established by Congress. To obtain an award, the whistleblower’s information must be unique, useful and lead to a successful enforcement action. After nearly seven years of experience administering the whistleblower program, on June 28, 2018, the SEC proposed amendments to the rules governing its whistleblower program.