SEC Charges Former LPL Financial LLC Investment Adviser and Registered Representative Sonya Camarco with Misappropriating $2.8 Million in Investor Funds
Posted on Monday, November 13th, 2017 at 2:05 pm
Erez Law is currently investigating former LPL Financial LLC investment adviser and registered representative Sonya Camarco (CRD# 2427529) regarding misappropriating more than $2.8 million in investor funds from her clients and customers. Camarco was registered with LPL Financial LLC in Colorado Springs, Colorado from 2004 to August 2017 when she was terminated regarding, “Registered Representative was terminated for depositing third party checks from client accounts into a bank account she controlled and accessing client funds for personal use.”
In August 2017, the Securities and Exchange Commission (SEC) filed a Civil Action suit against Camarco Investments, Inc. and its owner Camarco for alleged securities violations. According to the SEC Complaint, Camarco stole money from her clients’ accounts and then lied to her clients about the withdrawals during a 13-year period. The SEC alleges that Camarco forged client signatures on checks made out to “C Investments,” an entity Camarco used, and had the checks sent to a private post office box that she rented. Camarco also allegedly liquidated securities in her clients’ accounts to make unauthorized payments to accounts she controlled.
The SEC obtained an emergency court order and asset freeze preventing Camarco from further dissipating stolen client assets. The complaint seeks disgorgement of ill-gotten gains plus interest from all the defendants and seeks a permanent injunction against and penalties from Camarco. According to the SEC, when confronted by her client, Camarco lied and told them that C Investments was an outside investment that she made on their behalf. And when confronted by her employer, Camarco allegedly lied again, saying that she had no affiliation with C Investments and characterized it as an outside investment held by one of her advisory clients.
Camarco allegedly used investor accounts to pay hundreds of thousands of dollars in credit card bills, took cash advances on investor accounts, transferred investor funds to her personal bank account, and funneled investor funds through Camarco Investments into her bank account.
Camarco faces pending felony securities fraud and theft charges.
In October 2017, Camarco was indefinitely suspended by FINRA and “Continues until required information is provided to FINRA or the suspension converts to a bar.”
Camarco has been the subject of two customer complaints, one of which was denied, according to his CRD report:
August 2017. “Trustee of living trust alleges misappropriation of funds and forgery.” The case is currently pending.
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, LPL Financial LLC may be liable for investment or other losses suffered by Camarco’s customers.
Erez Law represents investors in the United States for claims against former LPL Financial LLC investment adviser and registered representative Sonya Camarco, regarding misappropriating more than $2.8 million in investor funds from her clients and customers. If you were a client of LPL Financial LLC 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.