James Booth Financial Associates LPL Charged In Ponzi Scheme

James Booth Financial LPL

Geoffrey S. Berman, Attorney General of the United States in the Southern New York District, and Peter C. Fitzhugh, announced the Special Agent in Charge of the Homeland Security Investigations Office (“HSI”), today it is JAMES T. BOOTH is charged with security charges, wire fraud, and investment consultant charges in respect of its one year scheme to pollute customers of its financial services firm, Booth Financial Associates (“Booth Financial”). Throughout the scheme, BOOTH sought money from Booth Financial customers and promised to invest their money in securities offered outside their normal consultancy and brokerage accounts. Instead, BOOTH almost paid all the money to pay personal and business expenses. In total, BOOTH fraudulently received almost $ 5 million from its clients. BOOTH was arrested in Norwalk, Connecticut, and this evening will be presented to Judge Kevin N. Fox in the federal court of Manhattan.

James Booth Financial LPL

Manhattan US Attorney Geoffrey S. Berman said: “As alleged, James Booth convinced his clients that he would deliver strong and secure returns on their investments. Booth is now in federal custody and will have to respond to his crimes. alleged. ”

Special Agent Commanding Peter C. Fitzhugh: “In an elaborate scheme Of false promises and deception, Booth allegedly achieved almost $ 5 million by attracting investors to guarantee their assets with a guarantee of safer investments and larger returns. The HSI New York Task Force has conducted financial fraud cases for at least forty years, and with the ongoing law enforcement partnerships in these cases, we can arrest alleged frauds that seek to exploit the hopes and dreams of people. others for their unlawful gains. ”

James Booth Financial Associates LPL

From 2013 to 2019, BOOTH sought money from Booth Financial customers and it falsely promised to spend their money in securities offered outside the normal consultancy and brokerage accounts. In particular, BOOTH directed some of its clients to write checks or wired money to an entity named “Insurance Trends, Inc.”. Instead of investing client funds, BOOTH, who controlled the Motor Trends bank account, Inc., then misappropriated its client funds to meet his personal and business costs.

According to Mathew Thibaut, Esq. at InvestmentFraudLawyers.com, who handles theses types of cases nationwide, “… a typical Ponzi scheme is a fraud that involves taking money from investors, then paying them off with money taken from new investors, rather than paying them with actual returns…

BOOTH has caused many victims with false promises of safe investments with high yields. For example:

  • James Booth convinced an older widow investor (“Investor-1”) to transfer money she had received from her late man’s pension into Insurance Trends, Inc. BOOTH falsely promised Investor 1 that She had $ 1 million by the time she was 100 years old. Old. As a result of BOOTH false declaration, Investor-1 spent more than $ 600,000 with BOOTH.
  • James Booth convinced another investor (“Investor-2”) to transfer its money to an investment product that its chief executive would not lose according to BOOTH, and would grow with the market. Based on this mock representation, Investor-2 moved money it set aside for its child’s college costs, at least $ 60,000, to BOOTH. Subsequently BOOTH failed to offer Investor-2 documentation of their investment or allow Investors-2 to redeem their investment.
  • James Booth convinced another elderly investor (“Investor-3”) to withdraw money from an annuity set up to care for its disabled sibling, about $ 18,000, and invest that money with BOOTH.
James Booth Norwalk CT
James Booth Norwalk CT

To prevent investors from seeking repayment of money, and to encourage additional investments, BOOTH provided manufacturing account statements to investors that falsely stated that BOOTH had purchased certain securities on their behalf and that these investments generated gains. BOOTH further concealed the facts from investors by using money received from new investors to make redemption payments to previous investors, in a similar way to Ponzi.

BOOTH, 74, of Norwalk, Connecticut, is responsible for a single count of wired Fraud, which has a maximum sentence of 20 years in prison, one account of securities fraud, has a maximum sentence of 20 years, and a count. one of an investment consultant’s fraud, which has a maximum sentence of five years in prison. The maximum sentence possible in this case has been prescribed by Congress and is provided here for information purposes only, as the judge will decide any sentence on the defendant.

Anyone aware of the offenses charged in the Indictment should contact the Attorney General’s Office.  Investors seeking to recover losses are encouraged to call investment fraud lawyers at 888-628-5590 or visit their website site.

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