WINSTON-SALEM, N.C. (CN) – An 80-year-old man claims his investment adviser bilked him of his life’s savings of $400,000 by promising annual returns of 105 percent. The man’s family claims that Roy Elwood Scarboro Jr. and his Capital Asset Management Fund, both of Archdale, N.C., shut up shop after his fund tanked and the retiree asked for his money back.
Wendy Laird, trustee for Corsiglia Family Trust, said Scarboro contacted her aged father, Jack Corsiglia, by email in January 2009, and arranged to meet him in Phoenix.
Scarboro described his Capital Asset Management Group as “a comprehensive financial services firm committed to helping … clients improve their long-term financial success,” according to the federal complaint.
Scarboro told Corsiglia he would put 20 percent of his money into foreign exchange trades, and 80 percent into U.S. Treasury bonds, the family says. He promised that Corsiglia could get 95 percent of his money back upon 30 days notice, the complaint states.
So Corsiglia forked over $400,000. But after 4 consecutive months of losses, he asked for his money back and filled out a withdrawal request at Scarboro’s direction, the family says.
Scarboro replied that he was “suspending any withdrawal requests at this time,” because “as I stated in one of my last emails, it’s imperative that I have that influx of money into my account before I can liquidate your position,” the family says.
The complaint continues: “Soon after Corsiglia was notified by Scarboro that he would not refund the investment, the office phone for Capital Asset Management Fund LP was disconnected and Scarboro ceased answering all correspondence from Plaintiff or Corsiglia.
“At no time up to the filing of this Complaint has the Defendant refunded any portion of Plaintiff’s $400,000.00 investment.
“Upon information and belief, Defendant never invested any of Plaintiff’s money in US T bonds.”
The family wants the $400,000 back, and punitive damages for securities fraud.
They are represented by Ervin Brown II of Winston Salem.