Fraud Alert: Oneamerica Securities, Inc. Financial Advisor Patrick Howard
Posted on Thursday, August 3rd, 2017 at 1:49 pm
Erez Law is currently investigating former Oneamerica Securities, Inc. financial advisor Patrick Howard (CRD# 5153247) regarding a fraudulent offering of investments in private funds. Howard was registered with Oneamerica Securities, Inc. in Dallas, Texas from 2010 to 2015 before he was terminated regarding, “Failure to complete firm annual securities activity statement requirement.” Howard is currently not registered with any brokerage firm.
In February 2017, the United States Securities And Exchange Commission brought fraud charges against Howard, alleging “that since February 2015, Patrick O. Howard and two Dallas-based companies he controls – Optimal Economics Capital Partners, LLC and Howard Capital Holdings, LLC – have raised approximately $13 million from 119 investors through the fraudulent offer and sale of interests in three private funds.” According to the SEC’s complaint, “Howard and his companies told investors that they would earn between 12% and 20% annual returns through investing in these funds with minimal risk exposure. They also allegedly represented that nearly all investor funds would be used to acquire the interests in the portfolio companies’ revenue streams, and that the promised returns were backed by insurance. The SEC alleges that these representations were false.” According to the SEC, “Howard and his companies only used $7.5 million of the $13 million in investor funds to acquire revenue streams from portfolio companies and spent most of the rest on Howard’s personal expenses and on unrelated business expenses.
In addition, the SEC’s complaint alleges “that, to cover up the fact that revenue from the portfolio companies was insufficient to support the guaranteed minimum returns promised to investors, Howard sent to investors account statements that depicted false account balances and encouraged investors to “reinvest” their purported earnings back in the funds. Additionally, Optimal Economics allegedly used new investor funds to make Ponzi-like payments to earlier investors.” The SEC’s complaint further alleges that Howard falsely represented his status as a registered investment adviser.
Howard has been the subject of one customer complaint, according to his CRD report:
March 2015. “Complainant alleges that on or around May 13, 2014 the registered representative misappropriated funds intended for the complainant’s whole life policy.” The case was settled for $3,500.
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, Oneamerica Securities, Inc. may be liable for investment or other losses suffered by Howard’s customers.
Erez Law represents investors in the United States for claims against Oneamerica Securities, Inc. financial advisor Patrick Howard, who is alleged to recommend a fraudulent offering of investments in private funds. If you were a client of Oneamerica Securities, Inc. 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.