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Former Janney Montgomery Scott LLC and Investors Capital Corp. broker, Patricia Miller, Sentenced to 6-Years in Prison following Ponzi Scheme

By July 19, 2016October 19th, 2017News

While a broker for Janney Montgomery Scott LLC and Investors Capital Corp., Patricia Miller orchestrated a Ponzi scheme placing client funds in various “investment clubs.”  Per the Criminal Complaint filed by the Federal Bureau of Investigation the “investment clubs” were named KS Investments and Buckharbor and Miller was placing funds in these “investment clubs” as early as 2000.  Miller allegedly converted client funds for her personal use and fabricated brokerage statements that were sent to clients showing positive returns.  Miller pleaded guilty to wire fraud under 18 U.S.C. Sections 1343 & 1349 and was sentenced to 6-years in prison and ordered to pay $2.5 Million in restitution.

Miller, along with Janney Montgomery Scott LLC and Investors Capital Corp., were also the subjects of a recent Finra Dispute Resolution arbitration proceeding as a result of her Ponzi scheme. Miller and Janney Montgomery Scott LLC were ordered to pay damages of $72,427.94 which was trebled to $217,283.83 pursuant to the Pennsylvania Unfair Trade Practices and Consumer Protection Law.  Further, Miller and Janney Montgomery Scott LLC were ordered to pay attorney’s fees, expert witness fees, and various other arbitration related fees.

According to her Finra Broker Check Report, Miller has also been the subject of 31 customer disputes, of which 4 are still pending.  The allegations in the Broker Check Report include the following claims: churning, unsuitability, unauthorized trading, fraudulent misrepresentations, misappropriation of funds, and fraud.

Fishman Haygood represents investors who have suffered investment losses in claims against their brokers or financial advisors. Our experienced attorneys have brought securities fraud cases in state and federal courts across the nation, as well as in FINRA arbitration. We work to help investors recoup their losses.

Of course, all cases are different. For that reason, we analyze each client’s matter individually and provide our personalized evaluation only after considering all of the facts and circumstances of all possible claims. If you or someone you know is the victim of securities fraud, please contact a Fishman Haygood lawyer today.

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