A former LPL Financial stockbroker based in North Carolina was recently sentenced to more than five years in prison for running a Ponzi scheme known as “Robin Hood” that netted more than $1.4 million while in operation.
LPL Broker Charles Frackell pled guilty to one count of securities fraud and received a 63-month sentence, plus 3 additional years under court supervision after his release. Fackrell was ordered to pay nearly $820,000 in restitution to his former clients.
Fackrell’s scam ran from May 2012 through December 2014, misappropriating funds from at least 20 clients. According to the U.S. Attorney’s office, he “used his position of trust to solicit victim investors and steer them away from legitimate investments to purported investments” under his various “Robin Hood” named entities through which he could access and control his clients’ funds.
Fackrell promised 5-7% guaranteed annual returns by making false and fraudulent representations that client money either would be invested in or secured by gold and other precious metals. In fact, only a fraction of the money was used in such fashion – much of it was diverted to earlier investors, in true Ponzi scheme fashion. Some of the funds also were used to cover personal expenses and bills, including large cash withdrawals.
As of this blog post, LPL Broker Charles Frackell has eight more pending customer disputes.
Did you invest with LPL Broker Charles Frackell or think you may have claim against your broker?
Although most brokers are honest, the occasional unscrupulous broker does exist. If you lost money investing with Fackrell or another broker or brokerage firm or believe you have been the victim of a Ponzi scheme, contact a qualified attorney first.
The attorneys at Dimond Kaplan & Rothstein, P.A. have recovered over $100 million from banks and brokerage firms for their wrongful actions. Contact us to schedule an appointment or consultation today.