Lee D. Weiss, the resident of Newton, Massachusetts, is announced to be charged with wire fraud and mail fraud. The announcement was made on April 30th by the Attorney of the United States of America, William M. McSwain. As per his announcement he is reported to be charged with six and two counts in wire and mail fraud, respectively. Allegedly, Weiss had started a multi-year investment scam targetting his clients that amounted to losses worth more than $10 million.
The man is an investment advisor and the principal of Family Endowment Partners, LP. In the name of private security offerings, Weiss has allegations to defraud his clients in the name of investing in his company called Florida Tobacco Company. In a detailed report on Weiss, there are complaints against him that claim Weiss to be making false promises of investing. And proofs of Weiss using his client’s money for his own payments are also in the air. The overall amount stands out to be in millions of dollars
It is to note that if the claims against Weiss turn out to be true that he’d be possibly sentenced for 160 years of imprisonment, in terms of money he’d had had to pay $2 million fine. To be exact, Weiss had reportedly lied to his clients and prevented them from learning about his Ponzi scheme because the funds had already been utilized.
The remaining question is the recovery of investment Losses, for which, The White Law Group is investigating the claims on Lee. D. Weiss. and the possibilities that can be covered by the employers that have failed to supervise over him.
In such cases wherein the brokers take the freedom of abusing their clients, they violate security laws. The brokerage firm they are working with is also liable for the losses. The liability of brokerage firms lay in the fact that they have been negligent while supervising their employees.