According to a press release by the Department of Justice (DOJ), previously registered broker and investment adviser Michael Barry Carter (CRD #: 3232017) pleaded guilty to federal charges of wire fraud and investment adviser fraud in a scheme to defraud investors out of over $6 million. As reported by the DOJ, from August 7, 2006, and again from November 16, 2011, to July 29, 2019, Mr. Carter was a financial adviser for several investors. During that time, he “made numerous unauthorized transactions from the victim accounts for his personal benefit.” The victims were defrauded out of over $4 million, which in accordance with the plea deal, Mr. Carter must pay back.
Wire transfers from his clients’ accounts were made directly into his personal account over the course of 12 years. The DOJ alleges that Mr. Carter used the funds to pay for his “lifestyle expenses,” including his mortgage, credit cards, and country club membership. In addition to transferring funds directly to his personal account, Mr. Carter obtained an $800k loan in an investor’s name without their knowledge or permission. Mr. Carter allegedly forged clients’ signatures, created false financial statements, and authorized transactions in furtherance of the scheme.
Publicly available information through the Financial Industry Regulatory Authority (FINRA) shows that Mr. Carter was terminated from his employment on July 30, 2019, after allegations that he misappropriated client funds. He was the subject of five customer disputes, many of which allege that he made unauthorized withdrawals and opened lines of credit without authorization. On February 28, 2020, FINRA announced that he was suspended indefinitely for failing to comply with an “arbitration award or settlement agreement or to satisfactorily respond to a FINRA request to provide information concerning the status of compliance.”
Investors who suffered losses because of a stockbroker’s, investment advisor’s, or financial professional’s misconduct or were the victim of a fraudulent scheme might be entitled to compensation through a FINRA arbitration. Contact Levin Law managing partner, Brian Levin, at (305) 402-9050 or via email at firstname.lastname@example.org for a free consultation. Most cases are accepted on a contingency fee basis, meaning clients are not responsible for Levin Law attorneys’ fees unless money is recovered on their behalf.
Levin Law is a premier securities, commodities, and class action law firm with significant experience. Brian Levin, Levin Law’s founding attorney, has achieved settlements and recoveries of approximately $100,000,000 in assets through securities arbitration and litigation for individual and institutional investors throughout the country and the rest of the world. Levin Law represents retirees, individual investors, high-net-worth investors, ultra-high-net-worth investors, institutions, family offices, trusts, publicly held companies, and others.