Call Now For a Free Consultation:
(614) 532-4576
Nationwide Representation

Investors Lose Millions in Scheme by Former UBS Broker

The Securities Exchange Commission has charged John C. MacColl, an ex USB broker, with investment fraud. According to SEC charges, MacColl allegedly defrauded over 15 investors by using high pressure sales tactics to create a type of hedge fund and Ponzi scheme. He allegedly persuaded people to invest in what he told clients was a highly-sought-after private fund with investment returns as high as 20 percent. Investors lost $4 million in investment funds.

Most of MacColl's alleged victims were elderly adults. One elderly woman invested her life savings, as well as money received from her deceased husband’s life insurance payment, which she planned to use for college tuition and expenses for her three children. MacColl allegedly promised his clients portfolio diversity and high profits which he substantiated with false account statements that reflected inflated fund performance. To avoid suspicion, clients claim they were told there was limited information about the investment fund such as trade confirmations and a prospectus.

MacColl allegedly instructed investors to take out a line of credit against or sell securities in their accounts. Allegations state that clients were then instructed to deposit those withdrawals into their personal bank accounts and write checks made payable to “Mac 01” or “Mac 001.” According to allegations, MacCall then picked up the checks from his clients, added his name to the payee line, and deposited the checks into his personal account. Between 2008 and 2018, MacColl allegedly collected $4 million in illegal profits, using the money for personal expenses. Over $400,000 allegedly went to pay investors in his Ponzi scheme.

After numerous investor complaints were filed and MacColl was notified by FINRA, he wrote a lengthy letter admitting to misappropriating client funds and giving details. FINRA BrokerCheck records show that 12 customer disputes were settled for $1.93 million in damages, while two remain pending for alleged damages of $1.51 million. On March 2018, MacColl was terminated by USB and barred by FINRA. Since then, criminal charges have been filed in Michigan.

Victims of investment fraud can often recover damages, including investment principal, expected gains if money had been properly invested, arbitration costs, attorney's fees, and punitive damages for egregious broker misconduct by filing a claim with an investment fraud attorney. Call Meyer Wilson at (614) 532-4576 today to discuss your legal options if you lost money investing with this former broker.

The information contained in The Firm’s posts on its blog, fraud alerts, investigations or elsewhere on the site is based upon information obtained from other sources including, but not limited to, news outlets and federal, state, and regulatory agency filings. All suspects and subjects of postings herein are presumed innocent until proven guilty in a court of law or administrative action and any and all crimes are alleged until a court or regulatory agency finds otherwise .

Share This Story
If you found the information provided by this article useful, consider sharing to your social media channels to help others in their search for reliable resources.
Consult with Our Legal Team
There is never a cost associated with a consultation
Atlanta Office

945 East Paces Ferry Road, Suite 2275
Atlanta, GA 30326
Columbus Office

614-224-6000
305 W. Nationwide Blvd
Columbus, OH 43215
Meyer Wilson
New Orleans Office

900 Camp Street 
Suite 337
New Orleans, LA 70130
Los Angeles Office

310-905-8688
2029 Century Park East,
Suite 400N
Los Angeles, CA 90067
Cleveland Office

216-600-1355
4781 Richmond Rd.
Suite 400
Warrensville Heights, OH 44128
Bloomfield Hills Office

248-817-8214
41000 Woodward Ave.,
Suite 350
Bloomfield Hills, MI 48304
Quick Links
The information contained in this Website is provided for informational purposes only, and should not be construed as legal advice on any subject matter. No recipients of content from this site, clients or otherwise, should act or refrain from acting on the basis of any content included in the site without seeking the appropriate legal or other professional advice on the particular facts and circumstances at issue from an attorney licensed in the recipient's state. Read More
The information contained in this Website is provided for informational purposes only, and should not be construed as legal advice on any subject matter.
Read More
chevron-down linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram