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Barred Broker: Former FSC Securities Corporation Financial Advisor Aubrey Lee Price Barred by SEC and Charged with Bank Fraud

Posted on Friday, June 9th, 2017 at 10:23 am    

Erez Law is currently investigating former FSC Securities Corporation financial advisor Aubrey Lee Price (CRD# 4108733) regarding bank fraud and a fraudulent investment fund. Price was last registered with FSC Securities Corporation in McDonough, Georgia from 2006 to 2008.

In August 2015, the U.S. Securities and Exchange Commission (SEC) barred Price after he pled guilty “to one count of bank fraud in violation of Title 18 United States Code, Section 1344 before the United States District Court for the Southern District of Georgia, in United States v. Aubrey Lee Price, Docket No. 6:12-CR-10-BAE-GRS, and one count of securities fraud in violation of Title 15 United States Code, Sections 78j(b) and 78ff and one count of wire fraud in violation of Title 18 United States Code, Section 1343 before the United States District Court for the Eastern District of New York, in United States v. Aubrey Lee Price, Docket No. 1:13-CR-58-SLT.” Price was also sentenced to a prison term of 360 months, followed by five years of supervised release, and ordered to pay a penalty of $300, and a forfeiture money judgment of $51 million.

In June 2014, Price was charged with one count of bank fraud in violation of Title 18 United States Code, Section 1344 before the United States District Court for the Southern District of Georgia; and one count of wire fraud in violation of Title 18 United States Code, Section 1343 before the United States District Court for the Eastern District of New York; as well as one count of securities fraud in violation of Title 15 United States Code, Sections 78j(b) and 78ff before the United States District Court for the Eastern District of New York.

In October 2012, the Georgia Commissioner of Securities suspended the registrations of Montgomery Asset Management, LLC (CRD# 150586) and Aubrey Lee Price and revoked registrations pending a 30-day effectiveness period, based on the complaint from the SEC filed in July 2012 related to several counts of securities fraud.

According to Price’s CRD, the SEC investigation alleged that Price went into hiding after orchestrating a $40 million investment fraud. “The SEC alleges that Aubrey Lee Price raised money from more than 100 investors living primarily in Georgia and Florida by selling shares in an unregistered investment fund that he managed. Price purported to invest fund assets in traditional marketable securities, but he also made illiquid investments in South America real estate and a troubled South Georgia Bank.” The complaint further alleges that Price created bogus account statements with false account balances and returns to conceal the losses of his investors’ funds of between $20-$23 million.

It is alleged that Price and other financial advisors at FSC Securities Corporation in McDonough, Georgia sold the unregistered and illegal PFG Investment Fund. PFG filed for bankruptcy to liquidate under Chapter 7 of the U.S. bankruptcy code in July 2012. At the time of bankruptcy, it was estimated that PFG had between $500 million and $1 billion of assets, between $150 Million and $500 million of liabilities, and between 10,000 and 25,000 creditors, according to Reuters. In January 2013, the PFG CEO Russell R. Wasendorf, Sr. was sentenced to 50 years in federal prison for fraud, embezzlement, and lying to regulators, according to the Federal Bureau of Investigation (FBI). Wasendorf stole more than $215,000,000 in customer funds from his commodity futures business.

Pursuant to FINRA Rules, member firms are responsible for supervising a broker’s activities during the time the broker is registered with the firm. Therefore, FSC Securities Corporation may be liable for investment or other losses suffered by Price’s customers.

Erez Law represents investors in the United States for claims against former FSC Securities Corporation financial advisor Aubrey Lee Price, who is alleged to conduct bank fraud and a fraudulent PFG Fund investment. If you were a client of former FSC Securities Corporation financial advisor Aubrey Lee Price or another firm, and have experienced investment losses, please call us at 888-840-1571 or complete our contact form for a free consultation. Erez Law is a nationally recognized law firm representing individuals, trusts, corporations and institutions in claims against brokerage firms, banks and insurance companies on a contingency fee basis.