Douglas McKelvey was arrested yesterday by the Securities and Exchange Commission for fraud. He stole over $1.7 Million from two elderly customers of a brokerage. McKelvey’s relatives were the customers. Would you think that a person so trusted could betray their own family?
Details of Fraudulent Activity
The SEC alleges McKelvey made over 300 fraudulent or unauthorized withdrawals from the accounts of two clients between June 2013 and January 2022. She was working as a registered agent and investment advisor at the Southlake, Texas, office of the large financial institution. Imagine using client funds to pay for personal expenses. He allegedly used funds from customers’ accounts to purchase securities and then took steps to conceal his misappropriation.
Legal Consequences
- The SEC filed a complaint in U.S. District Court, Northern District of Texas against McKelvey for violations of Section 10(b), Securities Exchange Act of 1933 and Rule 10b-5.
- The SEC wants permanent injunctive measures, disgorgement and prejudgment interest of gains allegedly obtained illegally, as well a civil fine.
- McKelvey was also charged with criminal offenses by the U.S. Attorney’s Office of the Eastern District of Texas today. McKelvey admitted to the charges.
Protecting the Elderly Investor
Investor.gov provides older investors with additional information on how to protect their investment and the most recent investor bulletins. It’s reassuring that there are resources to prevent these incidents.
Investigation Continues
Emmy Rush is conducting the SEC investigation. Wendy Tepperman is supervising it, as is James Flynn. They are all from the New York Regional Office. Ms. Matthew J. Gulde of the Fort Worth Regional Office and Rebecca Fairchild will provide assistance to Rush and Tepperman in this litigation. The SEC thanks the U.S. Attorney’s Office of Eastern District of Texas for their assistance, as well as the Federal Bureau of Investigation and Financial Industry Regulatory Authority. It’s comforting to see that a team of dedicated professionals is working to bring justice in this case.
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