PITTSBURGH (CN) – A day trader took more than $20 million from clients and used it to buy Porsches, Lamborghinis, Ferraris and a Bentley, which he stored in a warehouse he rented with his clients’ money, the SEC and CFTC say in federal complaints.
Sean Nathan Healy, 38, took the money from more than 50 clients, some of them his friends, and spent a lot of it on 10 hot cars, according to the complaints. He spent $50,000 on gold bullion, $1.4 million on jewelry, $2.4 million on a house, and $2.3 million on “home furnishings and home improvements, including a $500,000 home movie theater,” the SEC says.
Healy, of Weston, Fla., has been funneling the money to his wife’s account since 2005 and using it for living expenses and luxury goods; many of the assets are in her name, the agencies say.
The Healys created the Nevada company, Sand Dollar Investing Partners, to lease warehouse space where they stored the Porsches, Lamborghinis, Ferraris and Bentley they bought with their clients’ money: they spent $3,500 a month for the garage space, the SEC says.
Sean Healy kept the scam going for 4 years by doling out $1 million to investors, and providing them with false statements about their investments, the SEC says. It says Healy, “who claims to be a self-employed day trader of futures, options, and securities … was a registered representative associated with a series of broker-dealers registered with the Commission, including Stratton Oakmont Inc. and Barron Chase Securities, Inc. Defendant has not been associated with an entity registered with the Commission since 2001.”
The SEC and Commodity Futures Trading Commission seek restitution and civil penalties.