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SEC Charges Founder and Chief Executive Officer of Broidy Wealth Advisors Marc David Brody with Fraud

Posted on Tuesday, May 9th, 2017 at 5:00 pm    

Erez Law is currently investigating founder and chief executive officer of Broidy Wealth Advisors Marc David Broidy (CRD# 2808216) regarding fraudulently overbilling clients and stealing assets from client trusts. Broidy owns the Los Angeles-based investment advisory firm. Previously, Broidy was registered with UBS Financial Services Inc. in Buffalo, New York in 2010.

In October 2016, the Securities and Exchange Commission (SEC) charged Broidy with fraudulently overbilling clients and stealing assets from client trusts. The complaint alleges that Broidy and his firm received more than $1.4 million in gains since 2011, of which he billed $643,000 in excess fees and covered up the fees by altering the records before sending the form to three clients.

It is also alleged that Broidy misappropriated $865,000 in assets from clients’ trusts for his use for personal expenses, such as trips, his home mortgage and two Mercedes-Benz vehicle leases. To cover up his personal use of these assets, it is alleged that Broidy sold the trusts’ shares in two privately held start up companies, but he never transferred the shares to the trusts.

Additionally, “Broidy made material misrepresentations and omissions to advisory clients regarding their investments in privately-held companies with which he was affiliated. Specifically, he omitted information about the financial and operational status of those companies, his compensation for soliciting investments, and his role as a board member of those companies.”

According to a release on Department of Justice, U.S. Attorney’s Office Eastern District of New York’s website, Broidy entered into a plea agreement and agreed to make restitution to the victims of the fraud.

Erez Law represents investors in the United States for claims against founder and chief executive office of Broidy Wealth Advisors Marc David Broidy, who is alleged to fraudulently overbill clients and stole assets from client trusts. If you were a client of founder and chief executive officer of Broidy Wealth Advisors Marc David Broidy 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.