Banking Fraud

The Securities and Exchange Commission filed a Complaint yesterday against former RBC Capital Markets and Merrill Lynch broker Thomas J. Buck, who was employed in the Indianapolis, Indiana area. According to the allegations, Buck made false representations and omissions to certain clients regarding fees and commissions charged in their accounts and by making unauthorized trades in client accounts for which he did not have discretionary trading authority. From 2012 to 2015, Buck served as financial advisor to thousands of customers and investment advisory clients of Merrill Lynch, serving as leader of a team of associated individuals known as “The Buck Group.” The team had approximately $1.3 billion in assets under management. During that time period, Buck allegedly misrepresented to numerous customers the maximum amount of commissions that would be charged in his customers’ accounts, failed to inform customers that their total annual commissions were exceeding the promised limit, and fraudulently misrepresented to a number of his customers that their commissions [...]

In 2015, Scott Valente was sentenced for securities fraud, mail fraud, and obstruction of justice to 20 years in prison and fines over $5 million. However, in April of 2017, that conviction was overturned in the US Court of Appeals, Second Circuit. A new trial was held in July, and Mr. Valente was again sentenced to 20 years, but this time faced a fine of over $8.6 million to be paid in restitution to victims. Valente took advantage of his investment clients to line his own pockets Starting in 2010, Mr. Valente managed The ELIV Group, LLC, through which he raised money from investors.  In the suit filed by the Department of Justice, Mr. Valente was condemned for making false claims about the profitability of returns for the group, which was, in fact, losing money. At the same time, Mr. Valente was taking unauthorized and exorbitant management fees, which he then spent on personal property. He was also accused of [...]