Jacqueline Stanfill, a financial planner from Knoxville, who was charged with multiple felonies, decided to take a plea deal. The charges stemmed from an alleged fraud scheme that cost at least ten investors between $3.5-$9.5 million. Charles Schwab Investment Co. Inc. alerted the Federal Bureau of Investigation that it was receiving calls from clients of Stanfill regarding Schwab accounts that did not exist. Stanfill also faces civil litigation for the alleged scheme.
Two investors, a mother and daughter, were awarded $52,062 by a FINRA arbitration panel after they allegedly received unsuitable recommendations from their LPL broker, Samuel Izaguirre. The investors were only claiming about $9,000 in damages, but because of one of the investor's age and diminished mental capacity, they were awarded treble damages and attorney's fees. Izaguirre is still registered with FINRA and LPL has stood by him, claiming he acted in "good faith." The claims related to advice Izaguirre provide in connection with an IRA account.
The former president of Coastal Investment Advisors Inc., Michael Donnelly, admitted to defrauding his clients. Donnelly swindled almost $2 million from 13 clients, many of whom were over the age of 65. According to the SEC, Donnelly misappropriated money provided to him by his clients for investment and used it to pay personal expenses. Donnelly was able to perpetuate his scheme by providing false account statements and trade confirmations to the clients. Donnelley's settlement of the SEC's charges requires him to pay $1.9 million in disgorgement and interest of $365,723.