Securities and Exchange Commission v. Brian K. Velten, Civil Action No. 1:13-cv-23477 (S.D. Fla.)
The Securities Exchange Commission (“SEC”) recently filed a civil injunctive action in the United States District Court for the Southern District of Florida against Brian K. Velten alleging violations of the antifraud provisions of the federal securities laws in connection with his scheme to defraud at least three senior citizens who held accounts at Fidelity Brokerage Services, LLC (“Fidelity”), a broker-dealer registered with the SEC.
The SEC’s complaint alleges that, from no later than July 2009 through at least September 2012, Velten, an unregistered investment adviser, opened accounts for his clients at Fidelity and engaged in a scheme to defraud at least three of them by misappropriating approximately $171,000 from the clients’ accounts, making false claims about his ability to generate large profits trading stocks for the clients, and trading stocks on margin without client authorization.