U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 23413 / November 24, 2015
Securities and Exchange Commission v. Bernard M. Parker, Civil Action No. 15-1535 (W.D. Pa.)
SEC Charges Stockbroker with Stealing Investor Money for Home Renovations
The Securities and Exchange Commission today announced fraud charges against a former stockbroker accused of stealing investor money to remodel his house and pay other bills.
The SEC alleges that Bernard M. Parker raised more than $1.2 million from his longstanding brokerage customers and others who were told they were purchasing legitimate real estate tax lien certificates and would earn returns of six to nine percent annually. However, Parker only used a small amount of investor funds to purchase tax liens and instead used their money to remodel his home in Indiana, Pa., make car payments, and pay bills for his father-in-law.
In a parallel action, the U.S. Attorney’s Office for the Western District of Pennsylvania today announced criminal charges against Parker.
According to the SEC’s complaint filed in federal court in Pittsburgh:
The SEC’s complaint charges Parker with violations of Sections 5(a), 5(c) and 17(a) of the Securities Act of 1933 as well as Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5. The SEC seeks disgorgement plus prejudgment interest and penalties as well as a permanent injunction.
The SEC’s continuing investigation is being conducted by Brian P. Thomas and Kelly L. Gibson in the Philadelphia office, and the litigation will be led by David L. Axelrod and Nuriye C. Uygur. The case is being supervised by G. Jeffrey Boujoukos. The SEC appreciates the assistance of the U.S. Attorney’s Office for the Western District of Pennsylvania, the Federal Bureau of Investigation, and the U.S. Postal Inspection Service.