In our blog from July 2015, we detailed the allegations made against former Aegis Capital Corp. and Cumberland Brokerage Corporation broker Malcolm Segal (CRD# 1723563). Now, almost one year later, the Securities and Exchange Committee (SEC) has sentenced Segal to 10 and a half years in prison after pleading guilty to mail and wire fraud.
The SEC claimed that between 2009 and 2014, Segal had induced at least 50 people to invest at least $15.5 million using false claims of high returns on FDIC-insured certificates of deposits (CDs). Segal allegedly purchased the CDs and took the profit for his own benefit, and in some cases, did not purchase the CDs as promised. The SEC claimed Segal diverted investor money for his own funds and also to pay back earlier investors, allegedly stealing customer funds to continue and conceal the scheme.
Along with the 10 and a half year prison sentence, a U.S. District Court in Philadelphia had ordered Segal to pay $3 million in restitution to his victims. In November of 2014, the Financial Industry Regulatory Authority (FINRA) barred Segal from associating with any securities firm in any capacity.
Last year, we launched our investigation into the claims against former broker Malcolm Segal to help his clients seek to recover their losses. If you lost money investing with Segal, call our securities fraud attorneys at Meyer Wilson. We offer free consultations so you can better understand your rights regarding your potential claim.