Securities fraud does not just happen in the big financial capitals around the world. In late July, an Easton, Conn. man pleaded guilty to securities fraud, money-laundering, and mail and wire fraud. Gregory P. Loles falsely represented himself to investors and fellow church attendees where he was on the board of the church’s endowment fund. He told his victims that he was an investment adviser and their monies would be invested in Apeiron Capital Management, Inc. Little did they know that Apeiron’s registration at the U.S. Securities and Exchange Commission was canceled in 1998. He also told them that monies in the church’s building fund would be invested in Arbitrage Bonds, which did not even exist.
Victims from the church invested more than $10 million with him through the church in Orange, Conn. They took monies from their 401(k), IRA, and life insurance payments in hopes of gaining more through his investments. Loles did not invest the money as he claimed, and used the funds for his own credit card bills and to run the professional auto racing team at Farnbacher Loles. He was the majority owner and managing member of the team, and also swindled members out of money there too.
Part of Loles’ ruse included giving investors fraudulent account statements and payments from other victim investors’ funds to make the operation seem legitimate. The FBI and the U.S. Securities and Exchange Commission investigated the wrongdoing, and after being prosecuted by the Assistant U.S. Attorney Michael S. McGarry, Loles faces up to 20 years for each count as well as restitution.
Individuals who suffer a loss because of their financial consultant, and not the natural ups and downs of the stock market, can take legal action to recover their monies. Claims can be filed against a stockbroker. Individuals should seek a qualified attorney who is a member of the Public Investor Arbitration Bar Association (PIABA), as they will have the research and securities litigation skills to make your case stronger.
The Connecticut stock market loss attorney team at Stratton Faxon has a strong track record of defending victims of securities fraud. They obtained the first verdict in the nation against Salomon Smith Barney for fraudulent analyst reports when Global Crossings securities were sold to its customers. Salomon Smith Barney is now a part of Citigroup Global Markets Inc. The lawyers at Stratton Faxon are accomplished Super Lawyers and seen as part of The Best Lawyers in America.
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Alexandra Reed writes for Connecticut personal injury law firm, Stratton Faxon. Contact Stratton Faxon to speak with a Connecticut accident lawyer about your personal injury, wrongful death, or Connecticut malpractice case. To learn more, visit Strattonfaxon.com.
