SEC Busts Georgia Investment Adviser

ATLANTA (CN) – Paul Marshall, a Marietta, Ga.-based investment adviser, swiped $2 million from his clients and used it to pay alimony, take vacations and send his kids to private school, the SEC claims in court.
     The SEC sued Marshall, 48, of Marietta, and his wholly owned companies Bridge Securities LLC aka Bridge Financial, and Bridge Equity Inc., in Federal Court.
     The SEC claims that Marshall and his companies “have misappropriated approximately $2 million from advisory clients, some of whom are elderly. Some of this misappropriation occurred as recently as July 2013.”
     Also sued is FOGFuels Inc., of Atlanta, which “purports to be an alternative energy company and purports to provide services to municipal, commercial, residential and military customers,” the SEC says. Marshall is its majority owner and “wholly controlled” it.
     Marshall spent his ill-gotten swag on himself, the SEC says, “including luxury vacation, child support and alimony payments, and private school tuition and camps for his children.” He also blew some on “cash transfers to his current wife,” the SEC says.
     Marshall worked as an SEC-registered rep with at least eight investment advisers and broker-dealers from 1989 until January 2011, the SEC says in the lawsuit. He formed the unregistered Bridge Equity in December 2010 and state-registered Bridge Securities in February 2012.
     He concealed his frauds by sending his clients “fraudulent account statements showing non-existing investments and illusory investment returns,” according to the complaint. He also lied about having a “relationship” with J.P Morgan, according to the SEC.
     The SEC seeks restitution, freezing of assets, an injunction, and penalties for five counts of securities fraud.

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